The telescope received minimal funding because stakeholders couldn't make a good case for more. The results the facility could produce weren't seen as justifying the expense. In that light, that it was operated at all was more than one might reasonably have expected. The alternative was to just shut it down earlier. They squeezed the last drops of output before the old thing was allowed to die.

Sometimes with facilities like this you have to make the call that it's over.

Yes-ish? Funding was far more plentiful when the telescope was being designed and built, and in its early decades. I know zero details about that era - but I strongly suspect it suffered from "just focus on the cool parts" syndrome. And if it'd been designed and built correctly, or the problem caught and corrected back then, it would very likely still be standing.

Which is not to say it'd still be receiving operational funding, nor that its potential scientific contributions would be particularly worthwhile.