TheKutKu
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It did make some sense at the time - Crewed spacecrafts aren't cheap, Apollo CSM were quite expensive, and most importantly their production cost scaled the worst out of all the Saturn hardware at higher production rate.Shuttle put reuse on the wrong portion of the vehicle.
Nasa wanted a high flight rate crewed spacecraft, with this goal, it was, based on their own experience, cheaper to focus on reusing the "Orbiter" than the "Booster"
It's also likely a fully reusable VTHL shuttle wouldn't have done any miracle, better, yes, not SpaceX better, this required better technologies, different goals, and different organisations, and different funding source.