Well, based on the history of space travel since the end of the Apollo program, I'd say it's about time to give someone else a shot at it, at least. It sure isn't going anywhere fast at this rate, and government can always back it through subsidies and grants, if they want.
I remember reading recently that Virgin Galactic was even producing parts for their orbital rockets cheaper than the Chinese competitors, which is somewhat impressive considering they're doing it in the US (I think part of the system was hiring lots of entry-level engineers who would work for less than their more seasoned counter-parts - not really that bad an idea in a field that usually shuns people over 40 anyway). Anyway, yeah I think privatized space travel is the future of the whole thing. NASA just can't get the funding and half of what they do get is supposed to go to military and satellite programs.
As for things like orbital debris, they could be reduced by levying some kind of taxes/fines on polluting companies/programs (measured by the "unexplained" mass lost during the mission). They don't have to be aware of 100% of the debris lost in orbit, just able to create incentives for companies to not be careless about adding to the problem. Besides, it's not like the many government-run space programs haven't created the current orbital debris problem anyway, and they're immune to any incentives to keep it clean. I'm sure people can debate how such a system might just force space programs into countries without such fines for orbital pollution, but such is the nature of competitive government.