Well, lets play some devils advocate there. You are pretty much right in your criticism, but what about trying to make sense of it, at least.
Timeline: Musk wants to launch SS in some months. I'm worried about this short timeline. The Mk1 appears more a mock-up than an operational vehicle that should fly at 20 km altitude. And the perspective of putting mens about things like this is scary as hell, for now.
Well, as I understand it, it essentially is meant to be used like that. Mark 1 whatever are (like the Ironman suits) simply development increments done with flight hardware. Which is possible because, welding steel is cheaper than carbon fiber and other stuff. Which is true. And still misleading because welding light-weight structures out of steel is a lot different to welding a cargo ship from thick steel plates. But from the structural engineering point, his gets a few important things right: The weight penalty of using steel isn't that big, while steel is much more economic for production. In some applications using steel is even lighter than other materials (eg, using aluminum for combustion engine pistons turned out to be poor choice, modern steel pistons are much lighter, thanks to improvements in alloys and forging quality)
One year ago, the Starhopper prototype did not exist. It was built and tested to flight capability in less than a year. That is a pretty great achievement of SpaceX and should not be underestimated. Their project plan is ambitious, but works much better than their earlier endeavors. Should the following flights also be in such a pace, they could really get into orbit until next year AND that with the third or fourth flight prototype iteration.
Which means: The Starship prototypes have to be produced slightly faster than the Falcon 9 stages and get their R&D improvements in similar paces. Something SpaceX has already shown that they can do that.
Design: SS is designed as some sort of "jack of all trades". You go to LEO, you go to the Moon, you go to Mars. This is exactly the approach that doomed the Space Shuttle. Nothing is explained about crucial details as crew security and escape. The design itself appears to be subject to constant and radical changes across the time, attesting a non-linear approach: seems that the design team proceeds via attempts.
Well, but what if Musk doesn't think in spacecraft, but in an ecosystem of different launcher variants? In that case, the "jack of all trades" argument is no longer relevant. That what "doomed" the space shuttle in the end, was being a component of a bigger ecosystem of launchers, space stations and other infrastructure, which did not exist except this Space Shuttle. That can also happen to this BFR plan. But it could be prevented.
And still, for being so doomed, the Shuttle was a huge success. Just imagine what it could have been if done with a strategy that lasts longer than the term of a president.
Resources: Musk states that only about 5% of SpaceX personnel is deputed to the developing of this revolutionary spacecraft. This is astonishing because, in Sixties, NASA, for the task of developing a similarly ambitious goal, assorbed about 6% of the resources... not of a private venture, but of the most powerful Nation on Earth. I don't think I can believe that man.
And still: This isn't 1961 anymore. The world has changed dramatically since. Especially in terms of space economics. Its no longer about being first somewhere. Its about making use of space.
And maybe you did not notice it, but SpaceX achieved something historically this summer. It was the first time a Full-Flow Staged Combustion Engine was flying. Something both USA and USSR failed to achieve despite years of development. And that with cryogenic fuels. Another level more complex than what the USSR attempted.
Of course, this a bit unfair. SpaceX can simply do the same as we do and download the project reports about the FFSC experiments done by NASA. SpaceX is standing on the shoulder of giants. Again, this isn't 1961 anymore. We have learned a lot about spaceflight since then and SpaceX has access too all this knowledge.
Still, 5% of SpaceX is really not much. But if 5% of SpaceX is devoted to the Starship project, it is a huge R&D investment, compared to other companies.
. How great is it to see a prototype of this vehicel! 
