OK that's a good set of questions.
1) Is our job different from product development in the real world? Yes. I have worked for big business, I've done startups. It's categorically different here. We are responsible to maintain a set of telescopes and do science every night, that's our priority. Development of new capabilities is important but comes second after getting the "production" systems ready every day for observing.
2) Do projects get cancelled? Not from my perspective, things slow down sometimes and business priorities shift. We have new capabilities that come online over time and we spend development effort to get that integrated into the facility. It has a schedule and we spend our allocated time towards that.
3) Projects past their prime: yes, some things get really old and are built from unobtanium. Ever hear of a transputer? We make heroic efforts to keep that old stuff running and for the most part we get it done.
4) Does our contribution matter? Absolutely. Everyone is on task and really does a good job of keeping things running smoothly. I've been in industry for 25 years and I can see our team is on point and we are all doing a great job keeping it going. There is an enthusiasm I've not seen in other industries here. That's not to say it's all roses. We have shitty nights where everything seems to go wrong. That said we get it fixed the next day or so and keep on truckin'.
Don't take it for a fantasy, but it's a pretty neat situation we have here. If you are a software engineer we have a few openings. Working in Hawaii has it's peculiar challenges and it's not for everyone. Apply! You never know what could happen once you throw your hat in!