Like a lot of ex kipper fleet I followed this saga very closely at the time. I can tell you with absolute certainty that the "issues" with the MRA4 and the actual "redundancy", or lack of priority, of the capability (as perceived by some) were both factors in the decision. Or put another way, even if the MRA4 was perfect, the capability was in the firing line anyway. I have no idea which factor was the primary or what timeline was in play - does it in anyway matter????
This was reflected afterwards by Liam Fox in his frequently conflicting statements. He said on a number of occasions the capability was not needed (or could be covered by other assets). He called it a "cold war" capability in one article. But he also said the MRA4 was fatally flawed and blamed that too, when it suited him.
Anyway, this is pretty moot now. My view is it will take an SDSR to get it back - I could easily be wrong, but that's how I see it.