It's about government control
Due to obvious military applications, rocket technology used to be under government control. Musk and co. change the rules of the game, but it'll take a while until a new division of labor is established.
I don't see the parallel development of different rockets as a problem -- the bigger question is whether the NASA is still capable to properly plan and budget their projects. Falcon heavy was late and over budget -- but you could expect that for rocket science done by amateurs, starting from scratch. NASA supposedly has all the know-how already. Or did all the competent engineers move to private industry by now?