The SM-1 missiles were considered area defense missiles, although of much shorter range than the SM-2 missiles. They were capable of defending the air space of a convoy, whether a civilian convoy or a military replenishment group and/or marine expeditionary task force. As I noted, many of these ships are being replaced with ships with RAM missiles, therefore, their SM-1 missiles aren't needed much anymore. The OH Perrys were built for the ocean escort role, ASW and AAW. But their use as radar picket ships for carrier battle groups where not what they were built for. And today, destroyers have replaced their radar picket role.
The navy today wants to replace them with LCS, the littoral combat ships. These ships will have RAM for anti-air self defense, along with a medium caliber gun, 57-mm. With three different task modules these ships will be capable of minehunting, and or anti-submarine, and littoral roles. There will be no modest area defense anti-air role filled by the new ships, just self defense.
Since the US Navy built bigger destroyers, it appears they wish to do away with the frigates and build smaller ships to replace them with more flexibility.