Oh yes, I have seen where re-writes are actually done. Developers start to talk about the lack of "scalability" and "maintainability" of the application with the best solution being to rewrite the app. I've also seen Java-to-Microsoft stack ports being bandied about. Generally it is a really bad idea but some of the decision depends on the language(s) preferred by the firm inheriting the app and the size of the app.

It can sometimes be the right approach. It's not a decision to be taken lightly, but it should be on the table.

Especially if your goal is not to duplicate the functionality of the old software precisely, but to provide a significant upgrade. It really depends on the requirements.

Same.