This is a strange story. While it seems to be the standard "recession causes cutbacks" thing, there are deeper considerations at work here too.
Firstly, it's clearly a reversal of the 1960s policies. When JFK committed the US to reaching the Moon, the subsequent president (Nixon didn't have time to do much about it) followed it through. In part, this was because LBJ was consciously trying to capitalise on the JFK legacy and somehow therefore ensure his administration wasn't dominated by the escalating Vietnam crisis. In that, he was only partly successful. Obama of course is trying to undo the Bush legacy in almost every way. And this project, so long term and so expensive, was designed as a Bush legacy thing - something for people to remember him by in generations to come. It wasn't a real aspiration in the way that it was in the 60s.
And the reasons for that is the second point. We're just not interested anymore. Our scientific interests are entirely to do with our bodies. Biology - that's what we want. From that point of view, our range of inquiry has narrowed. We don't look outwards now. No-one wants to go back to the moon: the practical benefits look slight; the costs and risks immense; and the sense of achievement it would bring is irrelevant - we simply don't value that kind of achievement. We are much more likely to condemn it as wasteful and so on.
Thirdly, the whole project seemed somewhat uninspired. The rocket was new, but the delivery systems were entirely based on Apollo, just with updated computers and guidance and so on. NASA's argument was to the effect of "why rewrite a hit" but it made the whole idea seem derivative and as if they were just going through the motions - very expensive motions, at that. Is this unfair? Perhaps. But for a project intended to be concluded some fifty one years after the original moon landings, using the same designs is strange. Were there really no other ideas?
While I deplore the lack of imagination in this decision, and the fact that it's all too predictable in an era that is not interested in anything outside its own genitals, the project was definitely flawed. If Obama and his government can come up with anything more interesting, I'd be all for it. It does look as if they are going for something they are condemning elsewhere -a private sector, private finance set of initiatives.
Who'd a thunk it?