Some things worth noting (and general comments on points made above):
Even though it cost SpaceX more to develop reusability to this state, they still offer the lowest cost per pound to orbit in the industry even
without reuse. Even the Chinese can't beat their price. Falcon Heavy will cut the Falcon 9 price more than in half.
SpaceX is not taking an expendable booster and trying to see if it can be reused. It was engineered to be reusable right away, as best they could do. The actual procedures and requirements for doing this are what the test program has been about. When they first started trying to re-enter the 1st stage, they couldn't even keep it from shredding in the supersonic wind. Many incremental refinements followed. They are obviously making progress.
There are no boosters of any size that do not have thrust vectoring. Gimballed nozzles are used even on solid-motor ICBMs. One such can be seen here:
Most of the DeltaV to orbit from the booster (regardless of destination) comes from the
second stage. Typically in the vicinity of 4/5ths. The first stage just gets you past the "knee" in the rocket equation graph. Despite this, it's still the most expensive part of the vehicle, due to it's size and the fact that 90% of the engines on an F9 are in the first stage.
The Space Shuttle was expensive because everyone from Apollo kept their job. A typical US Government "save the civil servants" operation. It took an army of 30,000 employees to get that thing serviced, turned around, re-stacked and launched. It stretched the definition of reusability to the breaking point. Even the cockpit windows had to be unmounted and sent back to the manufacturer for polishing off micrometeoroid damage between flights. SpaceX has an order of magnitude fewer employees than Shuttle alone required, and couldn't spend money like that if they tried.
There is no question that the Merlin motor can be reused and restarted. The first stage undergoes a full flight duration hotfire on a test stand in Texas before it's sent to the cape.
http://www.spacex.com/about/capabilities. So the motors used in any flight (expendable or otherwise) are
already being reused. To land the recent booster required the launch burn, a boost back burn, an entry burn then a landing burn (4 separate engine starts).
Later this year, we could well be treated to seeing this: