Why did FHI get closed down? In the end, because it did not fit in with the surrounding administrative culture. I often described Oxford like a coral reef of calcified institutions built on top of each other, a hard structure that had emerged organically and haphazardly and hence had many little nooks and crannies where colorful fish could hide and thrive. FHI was one such fish but grew too big for its hole. At that point it became either vulnerable to predators, or had to enlarge the hole, upsetting the neighbors. When an organization grows in size or influence, it needs to scale in the right way to function well internally – but it also needs to scale its relationships to the environment to match what it is.
Notable: Anders Sandberg has written an ‘oral history’ of FHI as a final FHI report: https://static1.squarespace.com/static/660e95991cf0293c2463bcc8/t/661a3fc3cecceb2b8ffce80d/1712996303164/FHI+Final+Report.pdf (excerpts)
And some further personal comments: https://aleph.se/andart2/personal/thoughts-at-the-end-of-an-era/