Private launch into Orbit

I know the world is going to hell and all -- well, at least the US -- but did you know that yesterday saw the first privately developed rocket to reach earth orbit? It came from SpaceX's Falcon 1 Flight 4:

Here's the press release. It carried a dummy payload of 165 kg. The launch vehicle cost $7.9M.

The space shuttle will be shut down in 2010.... Are we reaching a point where only private companies can now do what the mighty US government was once capable of?