As a result they went to extensive lengths to avoid pad damage, including never terminating rocket thrust in the first (IIRC) 60 seconds of flight. Better let the rocket crash into something nearby than to explode at the pad.
Falcon has shown the playbook, and the demand for launch... The goal should be 2-4 launch sites in the medium term; with a second site very early to avoid exactly this.
This is exactly why ideas like test-driven development don't work well as a general approach.
Most realistic systems exhibit non-linear interactions where correctness is not compositional. Local correctness does not compose upward in any meaningful sense. Top-down design (working backward from the customer) allows for you to perform what is effectively one big global search. Bottom-up design (TDD) requires many local searches that all have to fit together perfectly at the very end. With units & composition, the consequences of component A's interactions with component B may not be considered until nearly the end of the project. If you are testing an integrated vertical, you will discover these interactions much earlier.
I'm unclear on the point of why having a rocket blow up when you're being slow and careful is more of a setback than having one blow up when you aren't.
If instead you try to work out everything in painstaking detail, build a small number of prototypes that your calculations assure you should work, and one blow sup, you learn that...your calculations are wrong.
Imagine developing software with no CI tests, where you only get to run one full system test every couple of months. Slow and careful means avoiding lots and lots of early learning opportunities.
This is a silly perspective. Some reports suggest SpaceX's 1-year budget is around 20 times the yearly budget of Blue Origin. Of course SpaceX can afford to blow up rocket after rocket. The radical difference is not methodologies, but how much cash is being thrown at the project.
For perspective, apparently the whole lunar lander program ran on a 1-year budget much similar to SpaceX's, and thus 20 times larger than Blue Origin's. Where they also highly risk- averse?
I don’t know the numbers but that spacex has more money moving around does not seem surprising. Launching 100s of rockets per year is not free?
Also did you do an accumulation over their existence? Blue had two orbital launches so far.