Resueability does help, but you still can't get useful payloads into orbit.
Humanity doesn't operate on the scales of material that have so far gone into space. Substantial human activity only exists through the employment of untold countless tons of material.
At the current rate of roughly $2000 per pound of material put into orbit, we simply can't put anything of real size up there, and the materials we do send have to be extremely lightweight - which is part of why the non-fuel expense is so high. We can afford to maintain our satellites and a rather small research-based space station with international cooperation, but anything beyond that meagre scale starts to become prohibitively expensive.
Ultimately it comes down to how we want to spend our resources. Space exploration is great, but it's only ever going to be affordable in the forseeable future on a scale of a few hundred satellites and maybe a dozen people in orbit.
Even if we somehow pooled our resources to send many tons of materials into orbit at horrific expense to build a moderate sized space station capable of housing a hundred or so people, what would be the point? Research can't really be meaningfully accelerated just by putting more people into space - you suffer from diminishing returns. And there's nothing we can manufacture in orbit that we can't do more cheaply on earth.
Heck, we can't even really extract mineral wealth from the rocky planets and asteroids because the distances involved are absurd, to say nothing of the engineering challenges. And what exactly would we extract that we can't collect more easily and cheaply here at home? Theoretically we'd target rare elements like Helium or Platinum, but the difficulty in finding and obtaining these materials in our solar system alone is staggering.
So when you put all this in front of the people who decide the budget, and tell them you could send a single research mission into space for a period of a couple years, or you could blow up untold numbers of targets with new guided missiles for the military, what do you honestly expect them to pick?
They can either support science and exploration with vague, nebulous results that may or may not actually be produced at some point in the future assuming everything works according to plan, or they can finance militaristic destruction and slaughter with immediate geopolitical repercussions that they can put an absolute value on.
Personally, I say put the money into science and research, but nix the space aspect. We've got plenty of problems in our own backyards that need worked on. As fascinating as star formation and cosmic background radiation and even new exoplanets are, knowledge of these things doesn't really do much to help us in anything but the longest of terms, if even then.
There are far more pressing concerns to deal with, like our energy problems. Spend less on warfare and space, put more into dealing with climate change. Not even the immediate concrete value of military spending compared to space exploration holds up against the value of preventing rising sea levels from wiping out the world's major coastal cities.