Crappy courses that charge minimal greens fees have a place in golf, so I wouldn't make the decision to raze based simply on quality.
Yes, there is always a place for courses that might serve as good cheap places to get in a regular round of golf, conditions be damned, or courses that are in less than ideal shape / challenge but serve a market for beginners. Remember, some people are on fixed or limited incomes, and a $10 round of golf (yes, that exists around here) might be all that can be afforded. Low pricing is also ideal if you are taking your kids golfing, and the track doesn't have to be anything spectacular or lush to provide an afternoon of enjoyment. Some of my best golfing days have been with my two youngest sons on a par 29 9 hole course around here...$8 adult, $4 kids, and a second nine costs me $4 and them $1.
Rather than raze a course that is too expensive, why not just not patronize the course; either the prices will come down to reasonable levels or the course will be sold for real estate.
Sad but true, I think that in some places we have a glut of golf courses, especially high cost daily fee courses.