Look at how, say, Planetary Resources was putting together their much smaller telescopes and you'd get an idea of how it could be done on the cheap. Then to scale up you'd focus on cost effectiveness instead of maximizing capability at all cost. Do multiple cheap launches ($100m each) instead of spending billions on a complicated automated unfurling mechanism, etc.
NASA is first and foremost our nation's science program. Everything from the network card driver your AWS instance is using to the planes flying into hurricanes to determine how strong they will hit was built with major contributions from NASA engineers.
LASIK eye surgery, the nutritional supplements in baby formula, solar panels affordable for consumers, OpenStack, even the BowFlex were all developed by NASA or under NASA funding programs.
You could at best say NASA is a jobs program for HN readers. :)
If suddenly launches only cost $50m then you might build a cheaper and slightly less reliable satellite as you know you can always launch another for only $50m
JWST is 6500kg. Quick googling shows SpaceX costs about $3k per kg, so the launch cost is about $20M.
The total project cost for JWST is $10bn according to wikipedia.