SpaceX will start launching Starships to Mars in 2026, Elon Musk says

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I sort of agree that using scarce water on the Moon to make rocket propellant seems like a poor choice, if it threatens the ability to establish long-term habitation.

But, it remains to be determined just how much water is on the Moon and how hard it is to access it for any purpose.

Rocket propellant made on the Moon seems likely to be hydrogen and oxygen split from water, due to the lack of easily available carbon.

But, if, as some here advocate, the Moon becomes a province of robots instead of biological life forms, then the competition for water for uses other than rocket fuel may not be what we are now thinking.

I'll take a wait-and-see approach, waiting for actual information.