A CSP competition is a great idea... it spurred the creation of Dragon cargo and Dragon crew.
If there are legit competitors to SpaceX then they can compete on a level playing field. Blue Origin had one (1) launch of New Glenn so far... they need to get going... Vulcan is expensive and also has one launch.
There is room to compete in many areas, from suits to in-space propulsion to landers... spacex only has the advantage right now in launch... but there are many important areas. High thrust/high Isp propulsion (e.g. NTP, FRC plasma, vasimr, etc) is a big area that needs work and there should be a lot of room to grow... chemical isnt really good enough for crewed flights... too much radiation exposure and too sensitive to orbit dynamics... we definitely need faster solutions.