Anyone considered that the reason for the cut backs might actually be because of the budget being put into the SKA? Or some other project massive project like Cern? Not to mention that budget cuts are occurring in all portfolios in every government across the planet. In case anybody missed it there is a gigantic recession taking place across the planet and that means the endless money pit is nearly empty. Politicians cannot keep on spending money like drunken sailors and that means cuts to science, health, sport, everywhere.
There are quite a few misnomers in this thread about many different things. Certainly some of the largest facilities are producing results better than the hubble despite an atmosphere. The technology has improved that much that many space programs are being canned. Larger facilities are being built all the time and that means budgeting for these. Some facilities that are becoming obsolete are being closed down. Besides launching is an inherently dangerous event. When Webb goes up it will not be servicable and if it is damaged during launch or fails to start up there goes billions of dollars; and that does happen. Not all observation will occur in space, most of it will be cheaper to conduct here.
Amateurs are producing good results and contributing as they have always done but amateurs will never be the mainstay of research astronomy. Everyone must see this is the case. It is incorrect to think that amateurs could compete with larger and better equipped facilities. We will always be asked to be the eyes to look out for things but the pros will decide what to do with the data if anything at all. Being involved in a program is great; I agree and enjoy being a part of one, but I don't think my data is going to change the world. Someone might use it but it is a very small part of the overall picture. The bigger questions are answered by bigger facilities with bigger budgets and professionals at the helm.
No offense to anyone intended.