EK does need to get to a certain size so it can pay off debt and service the Dubai economy. Ideally they'd be flush with cash, able to order another 100 widebodies and have them delivered alongside 1000 type ratings within the next two years, but they can't.
It's a thorn in their side, but they are stuck with the A380, and they are stuck with the debt incurred. More debt can be taken on or re-financed with fresh revenue, but dramatically downsizing and losing half their revenue capability is not an option. I don't think the Gov agrees COVID is "a perfect excuse" to scrap $20bn of assets that is to date only fractionally paid off or leased. Let's not forget, they are still set to receive many more frames.
You cannot just pull this thorn out or pretend it doesn't exist. Yes they might only break even, or run at a small loss while the debt winds down - but it's better than spending another $20bn on premature replacement aircraft.
Again, they have already incurred most of the debt/cost involved with an expansive A380 operation, and will be very much hoping that demand picks up again to service this debt until they can suitably replace the fleet.