Human beings are not very different from unintelligent beings, our DNA is only a 2% difference from apes.
It is also only 50% different from bananas.
Anyway, the reason why a "privatized" space company is stupid is because no matter what they say they won't truly be privatized. As of now, there is absolutely no way a company could make money from space exploration things. So NASA or SpaceX will all be taking the same amount of money from the government.
If they do decide to make money, there is two ways I could see them do it. One is selling tickets to space, which is harmless, but the profitable market for that is probably very small. The other is to sell science that could potentially benefit all of mankind, which companies will eventually purchase.
So if you pick government funding, America loses the same amount of money to SpaceX as they do to NASA. If you choose selling science, then America loses even more money to SpaceX (because they are making a profit). If you believe there is some other source SpaceX can get money from, I'm sure NASA can tap that resource too.