Well, my first observation is this paragraph (emphasis mine)
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				Miss O'Reilly's fee for the performance is thought to have been drawn from £30,000 given to the gallery by the Arts Council England.
			
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 So the "at taxpayers' expense" lead-in is an assumption, not fact.  Nice bit of sensationalism there.
As for the merit...never an easy question to answer.  In general, I'm in favor of an open threshold.  Just because I don't like it doesn't mean it's not art.  And I've got no problem with my tax presumed tax money (were I living in Ireland) going to art I don't like as long as it's going to art.