the system was actually quite a bit larger than they ever talked about. millions of users, etc.
having been part of one particular exit I know all too well that startup founders and ex-employees have deep emotional connection to their former company, no matter how much they got for it.
Depends on who you are. To the investors, that would be a failure. To the people that find it useful, it wouldn't be a failure until it disappeared or otherwise ceased to be of use.
He can't offer them a price that is lower than that.
It wouldn't take that much more effort to build the whole thing all over again, anyway.