So why is Elon Musk so focused on improving transportation with his companies in the internet age?
Musk is paying attention to the world as it is, where location is still important. For example, London and San Francisco are still terribly expensive; if location was unimportant they would not be more expensive than other cities or towns.
But slightly more seriously, not everyone can or wants to do everything through the internet. Sure, some white-collar jobs will be less location dependent, but that's hardly everyone. Some people will still want to see other people, and places. Stuff will still need to get from one place to another.
The internet and remote work is the best solution we currently have. However, in an ideal world we would all travel to work with each other, _if_ time and monetary costs of travel were low enough.
Travel is the best education you can get.