In both cases, there was a certain inevitability given the processes at work, the conditions, the changes and the difference between engineering reality and what is presented in the FAA Type Certification process as the basis for the modification of the Type Certificate. As an engineer working on aircraft, one thing is for certain, engineering data is laundered to the bare minimum in the interests of certification. This is in contrast to the engineering NASA does. The cert process does not achieve transparency, as it is a legal not an engineering process.
One can blame manufacturers, but there really is no way for them to be transparent and ever ship anything (ref. Lear Fan). I am not, however, advocating retracting any responsibility from Boeing. They must bear the responsibility for their product. I am only saying that we have created an environment as a country that makes it unlikely we will see the behavior we desire from manufacturers. As a person who likes to land the same number of times I take off, my interest is in helping the government improve as well as the manufacturers.
So Boeing decided to conclude that the existing system was sufficient. And they proved it to the FAA. There is no precedent or standard applied to the parts of the airplane that are not changed, once they are deemed not to need changing. This is similar to the housing code. Replace a socket in a house with knob-and-spool wiring, and you do not need to fix a thing. Rewire a bedroom in a house with knob and spool wiring, and the code will not let you put new knob and spool wiring in, one must then bring the house's electrical system up to code.
The reason there still is a 737 is the tremendous economic benefit afforded to manufacturers who use safety analysis to show that the previous iteration of the aircraft's systems are sufficient given proposed changes on the aircraft. That's why it has ridiculous engine nacelles, ridiculous landing gear, in many 737's ridiculous avionics. A new airframe is required, but the cost of a new airframe's certification is much greater than the hacky re-certification of an old type certificate obtained when standards and processes were very different and much out of date.
I think it is a very good example of how old systems continue to operate while the public believes they are up to modern standards. We see it in civil engineering now too. A bridge collapses in Pennsylvania and the public is told that over 1/3 of US bridges are outside of their designed life span and more expensive to fix than replace with municipalities that cannot afford to do either. The Concord was old and had what we call Tech Debt. It could not be made modern. Risk is just negative opportunity cost. When it crashed that debt was realized and the company had to write it down. One thing for sure is correct in your statement. It is about money driving the decisions, not engineering.
The exact motives for retiring the plane are hard to know. Safety almost surely played a part if nothing else by reducing demand. I was just correcting that you seemed to be saying the plane has been retired after the accident when it did in fact return to service.