Reuse is a complicated proposition between economics and technology. We know we can build reusable rockets. The challenge is to build and operate them at only a marginal increase in cost. Up until now, the cost of building and operating a reliable reusable rocket has been astronomically greater than an expendable launch system, per unit mass of payload. Clearly SpaceX has reached the point of duplicating previous attempts to soft-land a rocket-powered vehicle on Earth. (The SpaceX fanboys are, of course, claiming that SpaceX has "invented" this technology.) The question on everyone's mind is whether Elon Musk has figured out the magic formula for doing it economically and reliably.
The economics comprise more than just the cost of the vehicle itself, amortized over however many launches it's good for. The cost of each launch includes the refurbishment costs, and the more complex checkout procedures for the necessarily more complex vehicle. Adding complexity to a system by giving it additional capabilities (especially ones not directly related to its operational purpose) almost always ends up adding more than incremental cost.
Similarly the reliability issue has to look at the systemic complexity of the newly complex design. We have shown via many failures how bad we are (as an engineering industry) at reasoning about systemic complexity, and thus about bounding its reliabiltiy expectations. For example, will we need tighter weather constraints to allow for the first-stage flyback? Recovery fleet readiness? Range safety during flyback? SpaceX does not have a very stellar record in terms of on-time launches, all tolled. For the types of mission they want to bid on, missing the primary launch window is considered a mission failure.
Historically how this has worked out is that you can have a fleet of relatively cheap expendable vehicles, operating them with the understanding that they will not be very reliable. If you add money to make each unit more reliable, your costs increase far faster than your reliability. Proposing to make a vehicle reusable makes it necessary to make it more reliable, which is a losing proposition because you not only have to make the go-up part more reliable, but also the newly-minted come-down part equally reliable. The reliability has to be there so that you have a truly reusable rocket, not just a very fancy, very expensive "reusable" rocket that has, in practice, a high failure rate. Lowering the failure rate is the gilt-edged proposition. And lowering the failure-rate is not universally a matter of one-time NRE costs; it's substantially a per-flight cost as well.
So I'm legitimately interested to see whether Elon Musk has figured out the workable mix of technology and economics to make his vision come true. If so, it really will revolutionize launch services.