Imagining a moon base in 2069

CNN had an article that was discussing a Lunar colony design competition. The designs spanned the gamut from ridiculous (a sports arena) to plausibly small and probably a waste of time. (http://www.cnn.com/2010/TECH/innovation/11/18/moon.colony/index.html) I only saw the word "sewage" in one of the designs, so that one should win, solely on practicality points. But I think the only way that an outpost on the moon can be plausible by 2069 is if it can be economically viable, largely independent of government funding. 

There are two scenarios I can imagine for going back to the moon. 1) We drop a bunch of pre-fab buildings and do experiments there for something like ten years before the funding dries up and the place is shut down, largely due to the ongoing expense of the weekly or monthly shipments of food, water, oxygen, and personnel that will need to be supplied. Or 2) a large scale semi-independent facility can be built with a purpose. Presumably the only way to keep people alive on the Moon is to provide a shelter from radiation that surely has an underground component, oxygen source by mining and processing rock, water source by mining cometary water in the deep craters on the poles, and a power nuclear power supply to keep the lights on, provide recycling facilities and equipment running. On top of that, the purpose of the facility would have to be something like mining H3 to fill the supply shuttles going back to Earth to pay for the whole operation. The amount of raw moon dirt that the facility can process will be the determining factor for whether or not the people will survive and the facility remains operational. There is going to be a lot of big equipment, gritty mining, grease, dirt and a bunch of generally unclean fellas in this kind of facility. 

Of course it is my opinion that the first scenario is a flags and footprints waste of time and the second scenario is the only realistic way a permanent outpost can be established on the moon...assuming an economic commodity can be produced. 

The attached picture shows the general layout I would pick on the first go around. Start with an inflatible dome nearby a permanently dark crater as a staging area. Build a reactor in the crater to limit radiation exposure for the people living in the dome. Have two mining crews, one mining and processing surface regolith for H3 and a second crew should be building a ramp for easy access to the crater (where the water is) and underground tunnels for better protection and expanded facilities. Eventually, the atmosphere, liquids, and solids must be recycled using the reactor's power supply - so the poo will be vaporized and condensed to clean water, carbon, and trace elements. Food will be supplimented by a surface farm, and everyone will live away from radiation underground. The landing pad is far away from everything so that the occasional landing or takeoff that fails will not destroy the facility. 

Everything I have noted here is predicated on my completely original idea: space dozers. 

Hell yeah, its a nice dream, right? I am skeptical that any kind of permanent presence on the moon will be feasible in the next sixty years...even if someone builds and deploys a fleet of space dozers.