Sub-orbital. Think getting the craft up to altitude of 100+ km, hang out for a few minutes, and descend back to Earth. SpaceShip One, the prototype inspiring the Virgin Galactic fleet, was capable of reaching speeds of 0.9 km/s. [1] Escape velocity to get into orbit from Earth's surface is 11.2 km/s. [2]
My point, not to be overly disrespectful, is that suborbital flights are so different from what SpaceX has done that they seem like party tricks, not stepping stones.
In the big picture, it's not a huge amount wasted, I was just remarking on it being less significant in retrospect than one might have hoped.
[1] https://en.wikipedia.org/wiki/SpaceShipOne
[2] https://en.wikipedia.org/wiki/Escape_velocity