Pretty sure the OP didn't mention 'weapons' at all... I think his thought is very real though. The game is lacking competition... such as, Sputnik, or the race to the Moon.. Competing governments is the ideal context for this. It can be for prestige or flat out bragging rights.. doesn't have to involve weapons. How about sending up spy satellites with cameras (better the higher up the tech-tree) to get an idea of what they are working on next. Maybe partnering with other gov'ts to develop newer tech before rivals do. Maybe some gov'ts are better in some areas, and lacking in others. And even missions to kinetically take out rival satellites after you have tracked and discovered them.
There is so much depth and FUN that Squad is flat out ignoring. 'but, but, mods....' yeah mods that are mostly not optimized, cause memory leaks or a million other game-breaking issues. Contracts are still pointless and illogical. You have 2 choices right now, Sandbox where we can be little kids and make-believe or a jagged, incoherent, leap-frogging career that takes you from 'our first launch' to 'let's get ore from Eve' in just 4 or 5 contracts.
Is an in-depth, well thought out competitive mode, or career overhaul, too much to ask? Or do we really need KSP in 125 languages right now?