Sounds like a good idea. I've been wondering how we're going to get out of the for-profit prison business. I'm sure this would lead to its own problems, but, hey, that's what humans do. Fix a problem, create a problem.
I largely agree with you. A caveat, though, is the fact that shuttle *needed* USAF funding to get off the ground.
Whether or not it was a good thing that it got off the ground is a topic for another thread.