The cost of launch is small-ish compared to the total program cost, but the limitations on launch condition the engineering requirements in ways that inflate the engineering costs. JWST had to be built as an insane on-orbit autonomous origami project because its mirror couldn't fit in a fairing unfolded. Repeat for ten thousand other decisions that are made in order to optimize weight or volume.
If you can launch a hundred tons to orbit for $5M, you can just make a huge dumb cheap telescope and throw a dozen of them up there. Quantity covers a multitude of sins.
If you can launch a hundred tons to orbit for $5M, you can just make a huge dumb cheap telescope and throw a dozen of them up there. Quantity covers a multitude of sins.