SpaceX is essentially two companies. One company uses the Falcon 9 launch system, launches from Cape Canaveral and is very successful. The other company is directed by Elon Musk and launches giant fireworks from Boca Chica.
The Boca Chica SpaceX is burning money and does lame brained shit like not building a proper launch pad just chucking whatever up there. This siphons off money from the Falcon SpaceX which takes away from improving the Falcon 9 launch system, and also siphons off money from NASA.
Given that they're throwing away money at Boca Chica, other competitors will catch up and overtake the Falcon 9.
Kinda like Tesla not improving quality control and doing stupid shit like the Cyber Truck and allowing competitors to catch up in making sensible EVs.
Musk is an idiot but no one can tell him no at his companies. At least SpaceX was smart enough to send him to Boca Chica to play around so he wouldn't screw up the part of the business that actually works.