I wrote that it was the first PRACTICAL return stage. Different thing, man.
No, you said they were first to "operate on the principle that it was practical," which allows both of you to be right on this point. Surely the folks at McDonnell were operating on the principle that it was practical, they just couldn't find a way to make it work, because single-stage-to-orbit is really f-ing hard, perhaps not even possible with chemical rockets. It was the shuttle era, and they were trying to make what everyone wanted the shuttle to be, a SSTO "space plane" just like Buck Rogers.
Elon had the insight that Von Braun's Saturn V was pretty close to an ideal design for its time, and upgrading it to modern technology would provide enough extra payload capacity to make reusability possible. You didn't need a new kind of vehicle, just an evolution of the tried and true, with legs.
In the near term, major players like ULA and Arianespace will stay afloat on long term contracts already in the pipeline, and political inertia will keep them going after that. But the best news for them is that SpaceX simply can't make rockets fast enough to meet the demand. On the down side, once they figure out how to reuse them, they'll start to decouple their launch capacity from their production capacity. And they're not the only ones. There are several dozen other companies offering launch services in the next few years. Most are still in development, but many have already built and tested engines and other components.
There are basically 4 or 5 launch providers on the open market (depending on how you count, more if you include India, Iran, NK, etc). That number is likely to double or triple in the next five years or so. And they will serve a wide range of needs. Several are focusing on small payloads in the few-hundred Kg range, while some others offer heavy-duty versions of the Spaceship One/White Knight configuration, emphasizing the convenience of launching from high altitude: "Any orbit, anytime!" is the slogan of one of them (Stratolaunch, I think). And there are others focused on various niches of the market.
Point is, the space market is going to get a lot busier in the next few years, and the dinosaurs like ULA are going to be in a heap of trouble if they don't start adapting right quick. They are not stupid. They can see this too, which is why we see this shiny new concept from Arianespace and the recent Vulcan announcement from ULA. They know if they want to still have a meal ticket in 10 years, they'd better stay in the game.
Question is, can they pull it off, or is their inherent bureaucratic structure impervious to change because it's joined at the hip with the political establishment? Only time will tell.