This is partially because Starship (2nd) stage is relatively big for the Super Heavy (1st) stage. The benefit is that Starship, once fueled, can add large delta-V to large masses. The drawback is that great need of refueling.
It's long known that from energy standpoint it's much easier to get mass to LEO from the Moon than from the Earth. The Moon has plenty of oxygen, in form of oxides on the surface, and oxygen part is about 3 times bigger than methane part in the total propellant mass. So as soon as Starship flies to LEO and needs to fly further - instead of just returning to the Earth from LEO - that oxygen would be needed.
The technology of producing oxygen on the Moon is being developed for a long time - energy sources, chemical plant, packaging and delivery (possibly with electromagnetic guns) to a high Moon orbit and then to LEO. It's not ready of course but no significant scientific roadblocks are expected there. So as soon as we can move reasonably sized equipment on the Moon, we can start building an oxygen production and delivery system.
We have maybe a few years before Starship will be ready to move masses to LEO, so the subsequent destinations would come into question. I wonder if some organization is pursuing this opportunity, which may become an interesting milestone in development of space technologies and markets.
It takes a lot of energy. 3 hours at 1050°C seems to be the optimum[1]. This might be easy to achieve in labs with small quantities, but don't discount the massive infrastructure to do so at production levels. By 'massive', I mean just that: lots of mass. What's the break-even point where the energy out exceeds the energy put in?
You can continue to believe in the ever-moving Musk goalposts, the sci-fi future always a couple of years away. Come back in those "few years" and let's see who got it right.
I watched the first moon landing on TV as a child. Like many people I have wanted to see orbiting space stations, moon colonies, travel to Mars and beyond my whole life. Watching a narcissistic grifter hijack those dreams with bullshit and lies to feed his own ego and bank account makes me feel more than disappointed.