I think you've summed up the arguments well AD.Don't forget the new front fuselage that the Block II SH has to accomodate the AESA radar system also.
The way I see things presently, the differences between SH and Typhoon are primarily:
Typhoon - slightly better BVR fighter.
SH: Better multi-role fighter. certainly at present and likely to continue with the planned and in-development Block III variant.
Both aircraft share a similar range and payload.
Both aircraft use virtually the same A2A weapons.
The Typhoon has arguably better aerodynamic performance.
SH has an arguably better RCS, avionics/sensor system, plus the benefit of a fully integrated weapon system. Typhoon has a number of years to go to achieve this
As always it's a horses for courses issue which aircraft is "better" and as I suggested earlier, it's rare that technical excellence is the ove riding factor in defence acquisition anyway. Getting back to the thread topic,
India is most likely to go with the platform that offers the best industrial package as there is little overall difference in capability that I can see...
As you say, 'Horses for courses'. Consequently, as both seem to have some advantages and disadvantages it will come down to which one (if it comes down to a competition between these two) has the specific characteristics that best meet India's needs and which manufacturer can offer the best overall package.
BTW. thanks Thumper for the Aviation Week link, which Had a lot of interesting and up to date information about the SH.
Cheers