If you are computing on a $1000 computer, you are computing in the past. Part of the idea here is that you want to do research and development on supercomputers of the present that will give you the resources that will be available at lower prices in the future.
With salaries as they are today -- and real estate much worse -- it is actually more expensive to fund the same kinds of research today.
The past was similar to today in that most people in computing back then were orbiting around some local vendor's and local fads notions of computing. And it was a lot harder to make computers and other tools back then. It wasn't a crazy professor having an impact back then, but a whole research community that was required to make an impact.