Space Debris: Is It a Crisis?

One question I’ve been wondering about (and please hear me out because this is an honest question and I know nothing about this area.)

SpaceX’s Starship is being built based on the (business) principle that extremely low cost-to-orbit will be a good business, because it will unlock a huge market for launches. Some tiny fraction of these launches will probably go beyond Earth’s orbit. A much larger fraction (eg Starlink) will be aimed at low orbits where Kessler Syndrome can be avoided (unless there are major accidents.) But at least some of that new mass is going to wind up in higher orbits where Kessler syndrome is already a risk, and this new mass will obviously increase the risk of a disaster. And so far I’m only talking about Starship and SpaceX, not its competitors.

My question is: is there a world where Starship is a viable economic project — meaning its investment pays back at the rate SpaceX is betting on — but where it does not also dramatically increase the risk of disaster? And what exactly does the model of “successful Starship / no Kessler syndrome” look like in terms of future launches? Has anyone modeled this?

Orbital space tourism and space manufacturing could potentially make a significant market in terms of launch mass (that is, if you launch 1000-ton facilities instead of 1-ton satellites without necessarily occupying a large number of new orbits). But this is kinda speculative at the moment.

I think the real motivation for Starlink is precisely this -- there is otherwise no near-term market for greatly increased launch capacity. Starlink actually doesn't make too much sense from a purely technical perspective: in wireless point-to-point communications, distance is your enemy squared, both in terms of signal power and density. And it only gets worse when you have to punch through a cloud layer. But it is also the only near-term application that could absorb the launch volume offered by the Starship, so the two kind of feed off each other. This is not unlike the past ISS - Space Shuttle relationship, but at least the public is not paying for it this time.