The regulatory structure of the FAA is broken. The evidence of this is the time and cost required to do basically anything in space or otherwise. Zero risk is not an acceptable stance since it leads to the only zero risk option, not doing anything. That being said the right outcome here is an honest discussion of how rapid innovation can happen with appropriate oversight and a re-assessment of acceptable risk. Having been to launches and a recovery of the falcon 9 rocket I can say with certainty that there is an impact and it does matter, but that should be weighed against the historic progress that is happening and the massive industry, technological advancements and all that is and will bring. Musk shouldn't just get his way, but there should be credit given when the results of his method are clear to see compared to the alternative, stagnant, existing policies.