The main deal about 1st stage recovery is to simply make it cheaper to refurbish the vehicle as opposed to rebuilding it brand new. Any additional savings by performing such refurbishment is just additional profit or substantial cost savings.
Regardless, I'm still not convinced that a reduction of price to 10% of typical prices before SpaceX formed in the launcher market, at least over the relatively near term (aka 10-20 years), is going to result in 10x or more launches happening. I've looked over potential markets for launches, potential business opportunities in space, and while certainly the SpaceX approach is going to open up business opportunities, the launch market from an economic perspective is a very inelastic market.
In other words, the number of launches available in the global launch market isn't really impacted that strongly by the price of launches. At least it hasn't in the past.. For most of the satellites that have been flown in the past couple decades, the launch cost has been a marginal expense compared to the cost of actually building the vehicles. Of course it could be argued that the cost of those vehicles (like multi-billion dollar GEO satellites) are driven in part by the high cost of the launch too, but it is a factor to consider.
There is also the substantial and growing problem of stuff in LEO, where there may very well be a limit to how much "stuff" can be tossed into that orbital realm. That is also a huge problem at the moment with GEO satellites as well, as nearly every "slot" around the Earth is occupied and certainly is occupied at ideal locations for North America, Europe, and east Asia. SES-8 is in fact moving to a location above India. I could definitely see some international treaties (which already exist for GEO slots) which would limit LEO activity and cause at least a short term reduction in cubesats in particular.
I'm not all doom and gloom here, as I do think some tremendous opportunities have opened up to do some really neat things thanks to Elon Musk, but you also need to be a little bit sober about the future too. That is in particular with LEO (or even mid-altitude orbits) constellations where promises were made in the past and not followed through. There were some huge constellations that were built (Iridium is one of them) which opened a promise of dozens of launches and a real space launch industry with a strong incentive to drive down costs... and the bottom fell out of that industry once it got started back in the 1990's. In fact, it was the growth of the internet that drove a much older technology, underwater cable laying ships, which ended up undoing the commercial space launch market as it shut down the need for having those extensive satellite constellations. Yes, you could say that the high cost of launches drove people to send a physical cable (and now fiber optic lines) across the bottom of oceans to remote locations around the world instead of using satellites for point to point communication, but it also shows there is competition in competing ideas too.