I've been waiting for this to happen for over 30 years. No one will be happier than I will if/when a real space industry develops. But just like I think it is foolish for the US to outsource its manufacturing industry, it is doubly foolish to outsource our space program.
I'd almost sooner outsource our military... (opps!!!)
(Side note, there's a big difference between space industry and space science research. The needs of physicists/astronomers are different than the needs of engineers, even if there is some overlap. Both need to be supported and encouraged. And both need both private and government funding.)