For the past year or so, when evaluate a fund, I look at a history of fund closings. The number of such managers if few and far between.
Micro cap funds close because they have to. I own one, and will be purchasing another.
Your other points/comparisons are well taken. Yes, I'm holding onto FAIRX, but Fairholme Capital's recent fund launches don't pass the sniff test. The actions on this front bother me moreso than Bruce's controversial stock picks.
(For the record, my thesis is that CGMFX is going nowhere because Heebner is a trend investor and there is no trend in the market right now -- except volatility. So, asset bloat or not, I'd wager that CGMFX will continue to disappoint for some time.)

Well at least you got decent returns rights? How about the smucks who were in highly touted funds such as TAVFX and MUHLX back then? Have you seen their 3 and 5 year returns? How about those that got into CGMFX 3 years ago? -13% annualized 3-yr returns!
How about those that couldn't wait to get into DODGX before it closed...and those even willing to pay good $$$ just to get 1 share after it closed. How does 0.29% and 0.23% 3 and 5 year returns from DODGX, respectively, appeal to you?
How about those that got into the "rock solid" DODBX years ago? Did you know that FAIRX has bested DODBX the past 3 and 5 years?
Boy, I'm crying that I held FAIRX.
Latest Fairholme purchases include AT&T, Verizon, Banco Santander and Royal Dutch Shell.
I'm hanging on to FAIRX to let Bruce and Charlie do what they do in making unique concentrated contrarian bets and yes I have in the past taken some nice profits off the table. I also have other funds that target Small and Midcap value. I even have International Microcaps.
If you want a smaller value fund that is willing to close for long-periods when the time is right then consider something like the Sequoia fund. But also let the likes of Royce, Heartland, Allianz NFJ, Walthausen, Perkins, etc. focus on the Small-Midcap space and if I keep that in mind then I'm ok with holding FAIRX when looking at this at the Portfolio level.
As one example - I have a large position in the Allianz NFJ Smallcap Value fund in my 401k (YTD: 8.30% | 3-yrs: 8.67% | 10-yrs: 12.85%)
But like I said --- I have other funds that target US/International/Global small and midcaps and can overweight them if I feel really bullish about them and so I'm not as worried.