The show is again paid by the tax payer, and nobody can really tell, if it is cheaper or not - the numbers aren't yet known.
I can tell you for a fact there is nothing in the NASA budget for 2011, or 2012 that says "For Space X" the COTS contract has been let, Space X is a major stockholder only because they have prooven they mean business. Not because they are cheaper.
As for the tax payer footing the bill, who did you think would pay? Bigalow? Bush? Obama? get real... Elon Musk hawked his name, and bet big! He recruited some astronauts, and real scientists. Bought and paid for on the Space X dime, not NASA's.
The numbers are in black and white, they reflect a 20% loss in overall budget for NASA as a whole. They reflect no funding for Shuttle beyond draw down and retirement funding that was projected in 2009, and only about 1% of the total funds are set aside for R&D. Far less than the 15% normally allocated.
All this means is Space X is picking up where Obama wanted Commercial space ventures to pick up. By placing bets, and gaining seed money from NASA competitions. Orbital Sciences, is right behind them with Taurus II, and Sea Launch is closing the third place gap. Where's Bigalow? Where's Virgin Galactic? These guy's are to busy getting ready for tourists. Space X is just keeping pace with demand, and a heavy lift vehicle is the next logical step. Having a plan is the best thing any space company who wants a foothold in space can do, and having a clear path to get there is how it happens.
Pick a winning team, give the customer what he wants, eliminate the competition, race for the finish at a leisurely pace.