The only 2 athletes on relay funding that didn't run in the relay are Vicki O and Reardon. Anning, MHS and Dobson are on individual funding. YMJ is on potential relay funding but ran in the heat obv.
Also, the UK funding is done on an annual level and there are weird rules as to how many athletes can be on which level, and whether you can change levels. So I wouldn't read as much into the specifics on that for any more than a guide. It's as much about making yourself available for things like World Relays.
Finally, the UK sport funding is done on the Olympic cycle. So, arguably, the decision about what happens in a WC matters far less to that. They may still take into account WC performance, but there will be another WC before LA and it is entirely possible that we medal in the mixed relay there.
I'm sure that the athletes and coaches have had many a discussion. And maybe they made a collective decision to focus on the individual here. It would hardly be an absurd choice.
On the subject of hurdlers - Newnham aside - none of the others have done anything to suggest that they would have been better options than those who ran. So really it comes down to whether you think that Reardon and Ohurougu should have been in there. And, for me, Vicki has never shown herself to be a comfortable relay runner, especially as she would have been in traffic due to the set nature of the mixed relay. She usually leads off if she does the relay at all. And I'm not going to begrudge Reardon being given the chance of seeing what his first major individual champs looks like.
If the focus is *just* maximising medals, sure, it probably was a poor choice.
If at least part of it is helping to maximise the future potential of athletes, I have no problem with the decisions made.