No that is a straw man. Nobody is complaining about SpaceX having a monopoly on a reproducible good, that is completely illogical. It's like saying McDonald's has a monopoly on the restaurant business. What SpaceX has is something like an internal monopsony that has swallowed the entire supply of their own launch capacity.

Starship doesn't work right now because it doesn't follow the Falcon 9 development process.

You first make it work, then you optimize and then you do the impossible.

The starship development process is: attempt the "impossible", then watch it not work out (which it didn't for Falcon 9 at first), and then optimize, then make it work.

Like, why exactly is full reusability necessary for Starship's success as a Starlink launcher? Why can't they do the reuse of the second stage after they've been flying payloads?

Something tells me they would be in trouble of they had to tell investors that their rocket is not as good as they advertise it. There is this strange incentive for them to delay their success as far as possible, which the exact opposite of the Falcon 9 development process.

It seems like SpaceX depends on Falcon 9 more than even its external customers otherwise they would have cannibalized its internal usage much sooner.