So, since there is really no reason to have your tier 1 or tier 2 ship when you hit tier 3, how does one
get rid of your earlier ships, to free up ship slots for End Game?

i don't remember exactly where to do it, but i believe when you talk to the guy who you can select your default ship from, you have an option that says Discharge which will get rid of the ship, it may also be in the character screen (where it lists your char, ship, and BOs)

Correct. In Earth Spacedock, Ensign Obin allows you to select your ships, and there is a 'Dismiss' button for the ships that you no longer have a use for...

Though, it is kinda sad... I've grown attached to my little destroyer... Protected my butt -so- -many- times in combat...

A statement of the obvious:

Remember to remove the equipment from a to-be-decommissioned ship for sale or use elsewhere.

I went to discharge my ship but I can't the OK button is greyed out please explain

Is it the ship your currently using? I don't think you can discharge the one you are "on" at the moment. Switch ships, then go back to the page with discharge...should be able to then.

Or if it's the only ship you currently own. You can't discharge your last ship.

for some strange reson, when you go to discharge a ship that is not the default, and not your only ship it says please type the name of the ship to be sure, do that and hey presto, the ok button is still greyed out??

I too can no longer dismiss any ships, the ok button remains greyed out after you re-type the ship name

This is a major issue... I can not progress in the game... I type the name of the ship exactly ..and the button stays greyed out .. I have a full list of ships and need to make room for my next larger and more powerful one but ...It will not let me ...I have removed all weapons,, consoles,, etc and nothing still greyed out ..I will cancel if I cant get this fixed. I submit a game ticket and no reply ...please help ... I get my backside whipped because the biggest ship I have is a heavy cruiser .. I am captain level 3 and have the token from captain quinn to get the new ship and also the cash...