Earlier quoted context omitted.
Actually the budget was overrun quite a bit. I think it will cost $10B at this point.
$9.5 billion over is pocket change! If you adjust for inflation $10 billion is only $7.7 billion in 2007 dollars. Assuming the telescope works I can live with it being expensive.
It seems clear the original estimate of $500 million was overly optimistic; actually, it was criticized almost immediately as such after publication. There's a lot of incentive to low-ball these initial cost estimates.