I saw a TDS210 for sale for 80€ a few days ago with exactly those symptoms (huge blind spot in the middle of the screen), didn't bother with it as I had been through that once before.
Yes the problem is the polariser peeling. The further problems are that it is stuck to the glass, meaning that it is hard to clean (I used White Spirit IIRC), and that when/if you find a replacement either it must be similarly stuck or spaced away from the glass to avoid "contact patches".
I sourced some polarizer from a webstore some years back and was able to achieve a usable repair although nowhere near as good as the original for contrast and viewing angle.
I think that the problem is the polarizers available are more specific to colour LCD's, possibly I only replaced the front polariser.