BJR said: "Responding to the OP, yes, mainly it was a question of money. GYPSY is a very large and expensive show. Big casts, often a big orchestra. And by the time the 03 and 08 productions were ending, they weren't raking it in. (Patti's closed early in that famously bloody January during the Great Recession, which is also why we sadly lost the chance to have it be Patti's Rose filmed, as opposed to Imelda's.)
Worth pointing out the 08 revival was a bit more shoestring, since it was based on the Encores staging. I could've seen another actress in the 03 production, but even brilliantly acted and directed the 08 production was, it was all about the stars, not the production and design.
I also think finding replacements would be a tall order, especially one that could bring in the box office. As much as I wanted this last HELLO, DOLLY to run years with a string a stars, most couldn't bring in the $1 million you need to make DOLLY profitable."
The kind of interesting thing about the 2008 revival, though, is because like you say, it was a pared-down Encores based staging, which in theory meant it was significantly cheaper to keep running than some of the other revivals (the same reason Chicago has been able to run for so long, even though their box office receipts for the past ten years haven't blown anyone out of the water). Now, as I mentioned in an earlier post, that production was also doomed by the recession, so makes perfect sense it closed. But as far as just pure running costs, if any Gypsy production was going to keep running longer, this seems like the one that would have been able to do it, had it maybe opened in 2011 instead of 2008.