Our views differ
Only one of your views is compatible with objective reality. I don't think you understand how ridiculously expensive they would be to run.
The fully burdened cost of a sailor doing useful work (on top of their current wages, including all the costs DoD paid to train them, and everything they will cost after they retire, distributed to their useful worklife), is ~$300,000 per year. The low-end crew requirement for Iowa that's capable of manning all 9 guns simultaneously is ~1800. Maintaining an Iowa for a year costs more than half a billion just for the personnel. Then you add up the problems caused by the fact that they were built 70 years ago, and have tons of equipment that has failed or is failing, and for which there are no spares readily available. Ships have limited useful service lives. It doesn't matter how awesome they are, at some point it will simply be literally cheaper to build a new one than to keep an old one running. And the Iowas were designed way back when the cost of manning them was a fraction of what it is today, so they don't try to be trifty with labor.
Battleships "how ridiculously expensive they would be to run" large warships are very, very expensive to run but with battleships you are paying for the amount of high explosives the 16" guns can deliver on the beachhead which don't think any other weapon system can match for the cost. Need to keep things in perspective, Iowa crew ~1,800, 7,200 for four, the replacement plan was for 32 Zumwalts with crew of 200+ each ~6,400+ (last figure saw for Zumwalt crew was 180+ without its main weapon system, AGS 155mm operational) for reference a single Nimitz carrier is ~6,000 and finally would add Navy has a strength of 350,000 so Iowa's would account for nominal ~2% of its manpower.
Do agree with your point Iowa's would need serious upgrade, but don't think it would have cost anything like the $26 billion wasted on the 3 Zumwalts, but its all water under the bridge as Navy has abandoned its NGFS role in supporting the Marines making opposed landings against a peer enemy and don't see any current weapon system replacing the firepower of battleships.