That actually sounds worse. Large expensive telescopes will have issues, but amateur astronomers will say there isn't any issue because the pictures they take with their smaller telescopes are cleaned up with software.
Arguably so (I'm going to generally stay out of value judgments), but do note that it's not all large expensive telescopes, it depends on the telescope.
Several observatories were built near cities. As light pollution from terrestrial sources have increased, they've found their expensive optical telescopes become toys, and have moved their scientific collection utility over to radio.