I also do remember the story how NASA got a couple decommissioned telescopes from some intelligence agency, which turned out to be an order of magnitude better than Hubble is, and the agency was getting rid of them because they were already outdated. I do remember reading that if those were put into astronomy use they would be a lot better than anything we have currently, but of course those are being used for taking pictures of military sites and tanks, rather than stars.
And the main limitation is quite simply money.. and since a lot of the things that were only possible with HST in the past are possible from the ground now people started focusing on building space observatories for the parts of the optical spectrum that simply cannot be done from the ground (x-ray, far-infrared, gamma-ray).
Be warned: it isn't a pretty picture.
Separately, I was surprised to learn how many observatories there are in space. Here’s just a selection:
https://commons.m.wikimedia.org/wiki/File:Space_telescopes.j...
Someone had a great idea, we tax all bright objects put in orbit, then there is an intensive to make the satellites less bright and we make the people that pollute pay and not the public.
Well, couple small problems with this idea
1) who collects the taxes? I can imagine some international agency in charge of it which then proceeds to spend the money on other international projects, but how could you guarantee compliance?
2) Countries which are only now starting to launch things into orbit would(rightfully) say - hey, how is that fair? Others have been able to launch thousands of satellites for free, but now that we finally got the capability to do so, we have to pay? Why?
2) this always happens, look at intellectual rights. The country with the bigger army forces the rest to play by their rules.