If I'm reading what Trump wrote correctly, it sounds more like a matter of not thinking big enough. He wants them to have a plan to go to Mars, with the Moon as part of that, rather than just the moon.

As to the matter at hand... I don't think what they proposed is actually that expensive. There is important research to be done in space. This might be a relatively cheap way for a company to research things like developing manufacturing machines, such as to produce solar panels in low or zero gravity. From what I've read, the crystals for solar panels form a lot easier in low or zero g. So, with solar panel production ramping up so much, in the future it might actually be more economical to produce some parts of solar panels on the moon and air drop them to Earth for further production, or have them assembled in space for use on satellites and space craft.

Not all research necessarily be done by NASA or other government agencies. There's lots of important research to be done.

This could be the first step to more interest in space by various companies maybe.