Henry Spencer is describing the technical issues of the realm between low suborbit and orbit. His bottom line (which which I agree): there’s not a lot of market to justify investment for mid-range performance, including ballistic trajectories, because they need almost as much performance as orbit.
Thinks that there may be a role for suborbitals as a first stage for nanosats, and it may be possible to make some money on it, but they’re not going to be willing to pay a lot for a launch, particularly considering that piggybacking on orbital launches isn’t that expensive. Not a lot of utility to cubesats to date, most of them “solar arrays with radios.”
[Update a while later]
Sorry, there was a whole lot of other discussion, but it wasn’t completely jointed, and I was distracted. I saw Clark Lindsey taking notes, though, so I’ll bet he’ll have something posted later this evening.