You are really good at taking the good and the bad, but throwing away the good so you only have the bad.
These guys have given us no reason to believe that they will be anything like Musk. There are hundreds and thousands of private companies that operate within the law and/or ethically in general. Other people have already given you many reasons why being able to do our own domestic (albeit private) rocket launches is extremely beneficial. Such as doing our own starlink instead of using Musks'.
I'm pretty anti-capitalist and a Musk-hater as they come too, but I feel you are just speaking from a place of anger, not reason. Even if it were the government doing this, space infrastructure development is just as important for Canadian citizens as more dental coverage and overhauling public transit.
I agree that having the government do it would be ideal, though a government could fumble it just as bad or worse than any private company. I'll take a flawed domestic starlink/rocket launches over none at all. Especially if the alternative means relying on America/Musk even more.
I don't know about the toxins from launches, but I think it must be a drop in the bucket compared to air travel, cars, and dirty electricty generation. If that is what it takes to get us space infrastructure, I'd call that the cost of doing business. I also have faith that there can be reasonable way to mitigate the damage such as choice of where they are launched and further developing the technology. Much of the tech has gone largely unchanged from the moon landing era, afaik.