Jackonicko - apart from the fact that tourists enjoy the spectacle, I don't know how you can even think of comparing HMS Victory and the Red Arrows.
HMS Victory - Still a commissioned warship (yes, I know in name only) had her Keel laid on the 23rd July 1759 and continued to serve the Royal Navy (her final guise was as home to the naval school of telegraphy) until 1904.
Obviously there is a cost for maintainance, but she is a static display... one that attracts over 350,000 visitors per year.
Regardless of your service, I defy anyone to think that HMS Victory should be sold off etc, in much the same way that The Red Arrows should remain because of what they bring to the UK.
Museums and other armed forces attractions are a relatively low cost, yet invaluable marketing tool for the forces. Only someone myopic and small minded could fail to see their worth, even in todays harsh financial climate.