Yes it seems a shame, but the space shuttle is already well over 30 years old. The Enterprise (glider test vehicle) was built in 1974 and was launched from a 747 to a landing in 1977. The Columbia, the first operational shuttle, flew in 1981. I remember the excitement of that launch like it was yesterday! It was piloted by John Young, one of the great astronauts who flew on Gemini and went to the moon on Apollo 10 and 16.
They built five space-worthy shuttles:
Columbia - first launch 1981, flew 27 missions, destroyed during re-entry in 2003. The first Australian in space, Paul Scully Power, flew on Columbia in 1984. While in space he broadcast Slim Dusty's Pub With No Beer (Slim Dusty recorded on the EMI Columbia label)
Challenger - first launch 1983, flew 9 missions, destroyed during launch in 1986. Challenger took the first US woman in space, Sally Ride, in 1983.
Discovery - first launch 1984, has flown 38 flights so far, last flight scheduled for 24th February 2011. She is the oldest operating shuttle and has flown the most missions of the five. Discovery launched the Hubble telescope in 1990.
Atlantis - first launch 1985, has flown 32 flights so far, last flight scheduled for 28 June 2011. Launched the Magellan probe to Venus and the Gallileo probe to Jupiter in 1989. First shuttle to dock with Mir, in 1995. Will be the last space shuttle to fly.
Endeavour - first launch 1992, has flown 24 flights so far, last flight scheduled for 19 April 2011. Built from spare parts to replace Challenger. Has different software and hardware than the other three. Flew the successful Hubble repair mission in 1992. Been the main International Space Station construction and support shuttle.
Discovery will be the first shuttle to be retired, after its mission this week. It has already been assigned to the Smithsonian Air and Space Museum, and will join the Enterprise test shuttle on display at the Steven F. Udvar-Hazy display centre at Washington airport (together with many other fabulous aeroplanes)
http://en.wikipedia.org/wiki/Steven_F._Udvar-Hazy_Center
The fates of the other two shuttles have not yet been decided; more than 20 organizations are currently bidding on them. It will cost around $30 million for a museum to secure and transport a shuttle, in addition to building hangars and the on-going maintenance. NASA is, however, going to donate thermal tiles from the shuttle to high schools and colleges on a first-ask first-get basis - around 7,000 are available.
President Obama cancelled the Constellation project (including the Ares rockets and the Orion command module) in 2010, so a US replacement for the shuttle is some way off. Private consortiums are planning to use the Falcon 9 and Dragon space vehicles to supply the ISS; some are even proposing to buy the retired shuttles and fly them until 2017! In the meantime, Russian Soyuz vehicles will be used.