Agreed. If something is going to die, it will be the jets. No way any government will kill shipbuilding as there is too much local political capital invested there.
What I struggle with is that as a member of NATO we are supposed to move to 2% of GDP by 2024 (I think), yet the article suggest we will struggle to do 1.1% of GDP.
If we actually did what we committed to do, namely 2% of GDP, we would have no problem funding all our defence requirements.
As for the jets, I think you are thinking too logically. Logic is not involved in military procurement in Canada. It is all politics. It doesn't matter that something will be obsolete or does not meet the requirement, all that matters are the photo ops and how many billions go to Quebec.
My opinion:
If the Cons win in 2019, then they may be able to salvage the F-35. If the Liberals win, they will never go there; too much political face to lose.
So it depends on what happens in the next election. Cons = F-35, Libs = Gripen, Eurofighter or possibly nothing.