While I do agree with your points that reusability makes PMF less of a absolute indicator for efficiency but it doesn't make it completely redundant. IMO, eventually, just like commercial airliners, the "fuel efficiency" of a LV will become a critical performance benchmark once reusablility has become a commodity in the industry. Fuel is cheap relative to the rocket itself but isn't free, that extra hundred or two tonnes of kerosene/methane and LOX for a similarly sized payload will eventually add up in costs over dozens of flights.
Aerospace-grade liquid oxygen runs about ¥1,320/ton, RP-1 (kerosene) ¥20,000/ton, and liquid methane ¥8,000/ton. Adding that bit of cost doesn't dent competitiveness at all.
As for SpaceX — its Falcon 9 reused launch cost is $15 million internally, but it sells at $70 million+ per launch (commercial price; for government/military and crewed procurement, the per-launch price is far above $100 million). On the Chinese side, some people have been talked into believing the Falcon 9 launch price really is $15 million — see LandSpace's Chinese-language paper, for instance. They're trying to peg their own reused launch pricing within that range. My estimate is that once the tech matures domestically, the reused launch price in China will be around ¥25–30 million per launch (Falcon 9 class).
Tell me who cares about that 100–200 tons of propellant cost. It's smaller than the added shipping cost of offshore recovery alone (a single recovery voyage might run $1 million).
Actually, Europe and the US don't need to worry that China's reusable rockets will have any impact on SpaceX's market position. As I said earlier, this kind of impact doesn't exist—because the markets are segregated.
The entire satellite market is essentially US-dominated. It took China over 20 years from the turn of the century to achieve full technological autonomy.
And because of the so-called Wen Ho Lee case (he was framed) back in 1998, the US already ruled that no satellite containing even a shred of US technology can be launched on a Chinese rocket. More than ten years ago, if China needed any US tech, it required special approval. After 2010, at most China could lean on European tech to get by for a while—and later even European tech became hard to get (now it's not needed anymore).
So the real situation is: whether China has reusable tech or not makes no difference to SpaceX's development, and likewise, SpaceX's development can't affect China's space tech iteration at all.
Every time I see someone talking about China-US space competition, or "impact," I just laugh. If SpaceX runs into trouble, the biggest reason won't be some Chinese space tech advancement. It'll be that they shouldn't keep running so many reckless projects and burning money chaotically—then they could stay ahead for a long, long time.
For instance, if Starship V1/V2 hadn't insisted on second-stage reuse and instead used a traditional expendable upper stage, it could've been declared a success ages ago, taking over the SLS Block 1/1B/2 missions. Then they could've iterated slowly toward full-reuse second stage. This is something any slightly seasoned aerospace expert worldwide understands. But SpaceX just wouldn't do it—had to insist, and now it's still not even reached orbit, holding up the entire Artemis program schedule. And then there's that overweight pencil-shaped lunar HLS. Given SpaceX's whole "blow up rockets and learn" engineering principle, do you really trust them to nail the first Moon landing without issues?
Are all these dragging-everything-down problems supposed to be blamed on Chinese reusable rocket competition? Purely SpaceX messing itself up.