Yes, they've given sterling service for 40 years - and this is precisely why we should be retiring them. They've been belting up and down at full power for years, and the things are falling to pieces. Attempting to patch them up for further use is not a good idea.
170s are not "a joke", I travel on them frequently and find them much more spacious and comfortable than a lot of other trains. The seat/window alignment is good, the seats are comfortable and well spaced, and there's a good mix of airline and table seats. I do appreciate something better is needed for long runs, though - I've already said that.
Short HSTs are fuel-inefficient because the power to weight ratio is unnecessarily high - with a DMU it's more or less constant regardless of the length of the train - and the HST has very basic control systems that don't optimise power output. It's designed for prolonged high power operation at maximum speed, with a longer train, and anything less than that is operating at sub-optimal efficiency. The things are enormous gas guzzlers in the form they're going to operate in.
They're also not cheaper to lease than newer trains, and the Variable Usage Charge, related to axle load, is high because you've got a fairly heavy loco at each end, which makes them more expensive to operate than a multiple unit. It's not a problem with longer sets as it all evens out due to the trailers having lower VUC charges, but for the length and capacity of the train in the shorter setup, VUC charges are steep.