Fungi is a producer. Like many plants, mushrooms and algae they generate nutrients from the suns rays via photosynthesis. Consumers feed off them, and the food chain continues. Fungi and all producers are very important to the food chain as they are what helps keeps herbivores alive.
Fungi and bacteria are decomposers they decompose dead and decaying matter and return nutrients back into the soil at least from what I learned, but each school kind of teaches it differently :))
No. It was an idea that yielded common positive results. “Not a good theory” is biased terminology. New technology can yield new information, but it does not mean that it was not a good theory.