Sea Dragon is an interesting idea, but the concept of a "simple" 350 MN engine is a bit disingenuous. The Saturn V F-1 engine had about 8 MN of thrust, and they had terrible difficulties resolving combustion instability in the chamber, a problem that gets worse as engines get bigger. With modern computers and CFD codes, they might have luck doing so on an engine with 45 times the thrust, but I'm having trouble with that. Avoiding combustion instability is one of the main reasons for SpaceX developing the smaller, cheaper Raptor engine. With a small chamber, combustion instability is a tractable problem, and they expect to be able to build them for about $0.25M apiece - compared with a roughly $40M cost for the RS-25 (used on the Space Shuttle and SLS), which has roughly the same thrust as Raptor.
Remember that SpaceX intends to launch 9M dia SuperHeavies for a per-launch cost of a couple of million dollars - basically, the cost of the propellant. You're not gonna build a 23M diameter expendable two-stage rocket with enormous engines and fill it with fuel for that cost per launch.