Yes that's one of the problems, not designed for recycling. However they could be rescued or repurposed for other uses even so. There are several possibilities being explored, for the future
Attitude control One satellite could attach to another and take over station keeping. Often spacecraft are perfectly functional but have lost attitude control Another spacecraft with that capability could attach onto it and keep it in the right position.
Refueling - if a satellite runs out of propellant perhaps it can be refueled.
Canabalizing to make new satellite - for instance the communications mirror is a big component, not easily damaged, that could be useful for another satellite. This could be especially useful for nanosatellites, which haven't got enough space for a large communications mirror.
Design future spacecraft in a modular fashion so they can be serviced in space by robotic spacecraft, swapping out components with newer versions.
And this is about the Canadian SIS proposal to refuel satellites in GEO, designed to be able to open most of the 40 types of refueling system currently on GEO satellites after attaching itself to the ring around its apogee-boost motor - it would also be able to rendezvous with a replacement fuel capsule after it uses up its initial load of 2,000 kg of fuel Space Infrastructure Servicing