cheers of Musk employees as they watched Starship break up in flight.
It makes sense if you understand the enormous differences between SpaceX and old space.
An old space rocket is designed and simulated for years at enormous expense. Eventually they try to build one and find they can't. They either have to do expensive research into new manufacturing methods or repeat the expensive design and simulation stage. The project gets delayed for years and the costs rocket up. When they finally do launch the rocket gets to orbit but only after many cancellations and delays because the cost of failure would be the end of a cost plus contract. The final product has an incremental cost of $4B per launch and they can only make one every two years.
SpaceX's immediate goal is not a rocket but a rocket factory. Last I looked there are three boosters and three ships parked in the rocket garden plus more at the test site and more nearing completion at the factory. The factory can turn out a complete stack every month now and is undergoing a huge expansion. The license for Boca Chica is currently 5 orbital launch attempt + some suborbital launches per year. Blowing up a rocket in the cleared launch corridor really means nothing to SpaceX - except perhaps they will not have to scrap another rocket to make space in the garden.
For that particular launch, the thrust vectoring system was destroyed well before stage separation was scheduled. They needed the entire thing in pieces before it left the cleared launch corridor. The flight termination system was triggered and the shaped charges exploded promptly but the rocket did not blow up. Luckily it was doing summersaults so the thrust averaged out to zero. It took about 40 seconds for the rocket to RUD. I bet there was relief when it happened because no-one wanted a fully fuelled upper stage to explode outside the launch corridor.
The test generated a huge amount of data - one test is worth a thousand simulations. Simulations showed the upgraded base of the launch table was strong enough for one launch. That proved spectactularly wrong. The simulations have been improved and a large crater was dug (by rocket engines) and filled with rebar and concrete supported by pilings and covered in a giant upside down shower head. Although some of the pieces of the pad production system were built before the test it is clear that waiting for installation would have created at least three months of delay. SpaceX now have a similar amount of delay but with test data informing a thousand changes to the rocket plus better simulations to guide the design of the flame diverter.
With the pad unavailable because of construction work SpaceX has taken the opportunity to make huge changes to the layout of the ground support equipment. Most of the big vertical tanks have gone - the water tanks are now on their side and vacuum insulated tanks have arrived and been installed for LOX + methane. Testing has continued at the former Massey's gun range site. There have been structural tests on the nose cone, cryo-proofing of a ship, a static test fire and a test of the flight termination system.
I am sure all the SpaceX staff had hoped for more from that launch but in context it is clear to everyone but Jim Free that there has been no significant interruption to Starship progress. If the new flame diverter does its job then SpaceX might be able to fit in all 5 possible launch attempts this year. (My bet is on 4)