Tim,
Firstly, I do applaud your brave and persistent efforts on behalf of the Vulcan to keep the discussion going on this forum. About a year or so ago I had the 'temerity' to question the viability of the project on this forum and was threatened with a ban (via pm) until I got the main pprune admins to intervene. So much for freedom of speech...
Regarding your comments about the HLF, the problem is surely that it would cost a huge amount of time and money to have inspectors(?) who followed each and every project through to completion. Although it is the taxpayers' money, it is in effect going back to the taxpayer to use for the benefit of communities/interest groups/charities etc.
Uncomfortable as it may be, I think you just have to trust the groups to complete their projects, and accept that human nature being what it is, some will fall by the wayside. Equally, you can't really expect the HLF to keep pouring money into a project until it is completed - this would clearly be unfair on the many projects who no doubt are refused funding in the first place.
I think the only exception to this might be in the case of a public building (a museum perhaps) where it was half-finished and thus stood derelict for lack of funds. An old aircraft (IMHO) does not qualify.
I must say I was amazed the Vulcan got HLF funding in the first place, considering the problems involved and the relatively small audience for it.