Spending money to destroy a potentially useful derelict, particularly one with great historical value to future generations, seems foolish. Your suggestions make good sense. Even if no further use can be made of the hulk, It can remain as a monument and memorial for future generations. We need a "junk yard" in orbit, where space trash can be left indefinitely as a source of spare parts. Even if old equipment can't be trusted for critical applications, structural members and cable, conduit, panels and insulation etc can be recycled for emergency repairs or be taken advantage of in future designs. Its cheaper to move stuff in and out of the Lagrangians than sending it down to earth.

BTW, does "...deorbit the U.S. sections..." imply that modules built by other nations would remain in LEO? How do you partially dismantle a space station?

PS, after the Hubble is decommissioned, that beautiful 100" mirror would still be potentially useful. Even with its uncorrected figure, it could still be used for spectroscopic work. I can foresee a future telescope being designed so that magnificent piece of glass could just be plugged in. It would be a waste to dump it into the Pacific Ocean. Glass never wears out.