Even if the business model of SpaceX turns out to be not commercially viable, that doesn't have any bearing on the obvious strategic utility of its launch capacity. The government is not obligated to make a profit.
SpaceX is going to be solvent for a long time, it has been so successful, that there are more than enough investors ready to write as many checks as it wants. Heck, Jeff Bezos would probably give Musk as much money as he wants to hand over SpaceX.
About long term business potential, the military business itself is more than enough to sustain it if it were to come to that. US is turning incredibly fast towards cheaper, attritable systems. You can shoot down one satellite in GEO, but you can't shoot down 5000 of those in LEO.
SpaceX already provides valuable communication capability in a distributed manner, already proven in Ukraine. It is also launching a LEO military constellation. (Was revealed recently)
Apart from that SpaceX has an actual business proposition in the US where countryside internet connectivity is just horrible, and building physical infrastructure is prohibitively expensive. Same business proposition applies everywhere. Unit costs will come down as the constellation is built, the users increase, and the gear gets commercialized and scaled.