They already answered to the suborbital flights part.
Regarding orbit, “If there were people sitting in the Dragon capsule today, they would have had a very nice ride,”
http://www.nytimes.com/2010/12/09/science/space/09rocket.html
The main reason they do not fly humans on Dragon (yet) is because it still lacks an escape system (that the Shuttle never had, and would have probably saved the Challenger crew).
"Musk: Well actually if our safety threshold was equal to that of the Shuttle, then we could do that this year. In fact the Dragon spacecraft that we flew in December, if we had put someone in there with a seat, they would have had a fine journey. However we think that there needs to be an additional level of safety which is that there should be a launch escape system which the Shuttle does not have. And so that launch escape system will take us a few years to develop and verify all the functionality and so that's why we're expecting our first astronaut flight in about a few years."
http://marketplace.publicradio.org/display/web/2011/07/08/pm-elon-musk-on-the-future-of-space-travel-and-exploration/
Apparently they are so ahead of schedule that they will be berthing the Dragon Capsule to the ISS this December instead of waiting for another year as originally planned. Of course the road is still long but I'll make sure to be near Vandemberg to witness the launch of Falcon Heavy, double the payload of the Shuttle and a tenth of the cost.
As for the "third world countries" where you think they will be building their stuff:
"[E. Musk] also outlines why he believes American innovation will trump countries like China in space –even though that country has the fastest growing economy in the world and lower labor rates than the US"
http://www.universetoday.com/85409/elon-musk-why-the-us-can-beat-china/