First of all, NASA is the main client of SpaceX. They pay SpaceX money. Sabotaging NASA is sabotaging SpaceX. If NASA can (or want to) compete against SpaceX directly it probably wouldn't have fund half the R&D cost of Falcon 9.
The rest of your comment is just nice fiction.
To be clear, DOGE's strategy is not actually for America.
The bigger issue is that NIH, NSF, NASA, and public health agencies are no longer perceived by the US right as neutral expert institutions. They see these institutions as strongholds of left wing elites. So this is less about fiscal policy and more about cultural policy retribution.
That's why from the perspective of an outsider like me, it looks like 'they are killing their own country's science,' while someone like you might see it as 'smashing the power institutions of the opposing camp.' I think this is simply a difference between an external and internal perspective.
Honestly, just looking at the ban on international cooperation mentioned in the article, it comes across as nothing more than a desire for control.
What DOGE has actually struck is not the procurement budget for launch vehicles, but the destruction of the internal engineering capability to design them. The benefit of destroying that capability, in turn, greatly favors SpaceX. SpaceX doesn't want NASA to be a smart partner that builds its own rockets; it wants NASA to be nothing more than a giant wallet that just pays money.
This is a classic monopoly strategy that cloud companies used to employ all the time: destroying the customer's internal capabilities[1]
[1]https://www.medianama.com/2024/09/223-google-files-antitrust...