This is outdated model regarding space telescopes.
With radically cheaper launches, it's becoming quite possible - not now, but somewhat soon - to actually service telescopes, with conditions superior to those under which the Hubble was serviced by Shuttle teams.
With radically cheaper launches, it's not necessary to ensure the 'scope runs 24/7 for decades without regular maintenance. It can even be replaced regularly; including by bringing it to Earth, servicing it and sending back.
Launch prices are going to drop, but so is the necessity to be extremely reliable for the space equipment, for the same two reasons: 1) it's comparatively easy to get to it for a service and 2) it's comparatively easy to just send a replacement if needed.
With space manufacturing advancements still ahead of us - we didn't really experimented with making telescopes in orbit - it's not clear if space telescopes won't outperform terran ones. Space telescopes are going to have advantages like "atmosphere doesn't block part of the spectrum" and "there is no need to make a big structure capable withstanding 1g gravity".
It's still crucially important to be able to do terran-based astronomy, and that's a problem, but there is no doubt that the astronomy revolution which started with Hubble still has major advancements to have in the near future.