It's a platform built of new stock but very old SSMEs, still using hydrogen and all the problems that brings with it, on a non-reusable basis, with apparently varying quality even amongst identically specced but different vendored mission critical parts. The litany of issues they're outlining here are all varying stages of terrifying, and things that shouldn't be getting caught in this validation phase of a rocket that's actually already had a successful-ish launch demonstration.
Meanwhile, Starship keeps iterating like crazy, the way SpaceX does, and with significantly reduced relative complexity, on a vertically integrated platform that they have much more control over. I'm no Elon fanboy, but Starship is going to win this race, right?
[1] Boeing for the core stage and integration, Lockheed Martin for Orion, Northrop Grumman for the SRBs, and Aerojet Rocketdyne for the SSMEs.
It's not lobbying to cancel a program, it's lobbying to replace a program with another. That other program may bring jobs in the same places; it's actually quite convenient to do so, since there are not that many people around with expertise in rocket manufacturing.
In many ways, NASA and others have de-risked their heavy lift capabilities by putting together at least two sources. Artemis has sole-source contracts to both SLS and Starship for separate things, but the program is creating two separate heavy-lift vehicles.
Starship has to innovate its way into orbit first (the most recent flight got the altitude for LEO, but not the velocity) and then around the moon to catch up to where the SLS program is today. As far as I can tell, many space folks outside of SpaceX actually have more concerns about whether Starship can deliver on its promises than whether SLS can.
Starhship could easily have reached true orbit, they deliberately stopped just before it for safety reasons (don't want massive chunk of space junk if something goes wrong during deorbit)
Also, at that altitude, there's enough drag that you can de-orbit a big metal can pretty easily by simply pointing it in a high-drag orientation. Most LEO satellites do this when their missions are over, and it takes a couple weeks.
A sister comment mentioned "venting excess fuel," which I don't believe was in the flight plan, but I would believe that the craft was leaking fuel given the clouds of gas around the thing on all the camera views (and the excess rotation in flight). That would explain how starship failed to make orbital velocity and still ran out of fuel.
Presumably, if there was a leak and they fixed it, there wouldn't be any problems getting to orbit. But the fact of the matter is that they didn't reach orbit despite trying (getting into LEO was in the published plan), and the fuel gauges got to 0 before they got there.
It's very possible that the valve between the tanks for the in-flight fuel transfer test (which didn't seem to happen successfully) was broken, so it's not actually a problem with starship at all, but a problem with the experimental setup.
Most of the satellites the first launch carried did not work, it can't launch often enough to be a viable general use heavy lift launcher, it costs too much to launch, it's such a rough ride that scientific probes would rather take a few years longer to reach their destination on a smoother ride like Falcon Heavy. It can launch Orion but that's meaningless since Orion can't do anything on its own, and as mentioned earlier, it can't launch often enough to lift a second vehicle for Orion to work with.
Yes if only one succeeds the US will still have one heavy lift system, but that would require massive re-vamping of NASA's planned mission goals.