> inexact quote: "You know, we're throwing towns into the sky" related to the early mishaps of R-7 program development

I have not looked at the source (in Russian) for several years; now that I am curious I will check at home tonight. But as far as I remember "we are shooting towns into the sky" remark was not in reference to the R-7, but in reference to N1-L3, a hellishly expensive competitor to the Apollo manned Moon mission rocket. The meaning of the phrase was that each and every test should be taken extremely seriously as the cost of each flight is comparable to the cost of building a new city.

R-7 was developed much earlier when Korolev and his team at OKB-1 were iterating rapidly on much cheaper models that were primarily funded as rockets for strategic thermonuclear strike warheads. The civilian (Sputnik and later Gagarin) flights were an offshoot of that and were small enough that it happened as a side project. R-7 was a comparatively simple and cheap design, which may be why that family became a workhorse from the late 50s to carrying crews to the ISS. And the super expensive N1-L3 was a stillborn.

That's my recollection, need to recheck the sources.