Spot on. Musk is trying to marry "Saturn V HLV" with "full-reusability" and the end result - a brute force approach - is so huge, so massive, it can only be justified by a grand scale onslaught on Mars. Although it could be very interesting for the Moon, too, admittedly.
But that's only the human exploration part of space.
Commercial space might think it is a little oversized.
I mean, the 747 is an outstanding aircraft, but for Ryanair or Easyjet low-cost short-haul airlines it would be completely overkill. Which mean: there is room for smaller RLVs just like there is is room for much smaller airliners bar 747 or A380 (fortunately enough).
Musk somewhat acknowledged this recently when he admitted that Falcon 9 and Heavy might not be replaced by Starship-Super-heavy.
Also for space tourism / passenger transportation (suborbital, orbital, cislunar, whatever) Starship is really huge. Finding enough people to fill all these seats won't be an easy task.
Whatever, if that works, Musk will have accomplished full-reusability the Bono / Truax way (king size) rather that "The Rocket Company DHC-1" style. Starting with an enormous vehicle with a huge payload.
