The problem with exempting certain classes of expenditures is the distortionary effects kick in really quickly. The most efficient allocation of resources comes when no good or service gets preferential treatment over another.
What the FairTax does is apply an across the board "prebate" that matches what the CPI says is the poverty level of consumption. This means that anyone living at the bare minimum will not pay taxes, and that consumption over the poverty level will be taxed at a 30% sales tax rate, the equivalent of a 23% income tax rate.
The FairTax doesn't just tax the poor. What it really does is tax the middle. The very poor (anyone living below the poverty line) pay no taxes. The very rich pay taxes commensurate with their consumption, which is almost always lower as a percentage of their income. But this isn't a bug, it's a feature. It encourages production, savings, and investment instead of consumption. This means that the guy who makes a billion dollars worth of widgets is paying no tax unless he spends at least 10,400 dollars of that widget wealth in a year. It encourages him to invest and save, rather than consume. And that is what we want wildly successful people to do. More startups and fewer yachts is a good thing for our economy in everything but the very short run.
I wouldn't be so sure that we got to the moon and haven't done anything with it. We've been able to go to the moon and back for 50 years, but we've already sent technology out of our solar system. Now technology and abundance is coming to the point where space travel is accessible to the masses. Soon, every person who is able to charter a jet will be able to visit space. Give it another 20 years and Joe the plumber will likely be able to visit space instead of taking his once in a lifetime cruise to Hawaii.
I agree that we haven't done anything with space technology in the short amount of time that it has existed, but I can't really imagine that if things keep going as they have been, that it will stay that way for another 50. While interstellar travel is still outside of our forseeable future, interplanetary or at the very least additional lunar travel seems quite likely. But, like all futurists who claim to know what they're talking about, I freely admit I'm riffing from the armchair.
If you think the system is working, ask someone who's waiting for a prompt.