Maybe for the prison system but for the military it's actually just a routine force modernization program. Just like the M35 trucks. I think the issue was we were having problems keeping 'grand dads ole duece and a half' on the road. The reached the end of their programed life.
For the CUCV, Desert Storm put the death nail on it. Their loaded cross country capabilities were not up to the requirement. The troops found they couldn't load their 4 duffle bags of goodies per person and the color TV and the kitchen sink on them without them sinking in the sand. The CUCV program decision was made as a result, and immediately after, Desert Storm. The mass turn ins began well before the current guy in ofice even started campaigning.
As for usage, the CUCV was considered a more roadworthy vehicle than the HMMWV. It is quieter, easier to drive, more comfortable, faster, and cheaper to keep on the road. We used the crap out of them and our HMMWV sat in motorpools. Would I prefer one in combat, probably not. Stateside, yes.
As for condition, it's hit or miss. Keep in mind that most of the vehicles you see now, sat somewhere longer than usual due to our 'economic stimulus' not providing the military a budget to move them from one place to another. That meant more time to canabalize to keep the rest of the heard rolling. Units really don't want to give them up. The military was suppose to have them gone by Oct 2009 but they're still around. So anticipate by Oct 2010 now and another 6 months for all of them to clear DRMO and GL. You will still have GSA vehicles but they tend to be trash. And there are still some REALLY, REALLY, REALLY nice ones out there.
Oh, and btw, did I say, there's nothing to see here, keep moving, nothing to see, no need to panick, .....