I agree with most of that, Germany outright banned it's own industry from participating in the EAP demonstrator at one stage, and of course at several moments years later threatened to ditch the effort for US licensed aircraft, causing delays and huge cost increases for no savings or change in capability (as downgrading systems only increased costs as they found out (but which the UK had hit waaay back during the TSR.2 fiasco)).
Arguably a national 'go it alone' effort, like the French would be quicker, cheaper and position the UK to an even stronger position vis-a-vis the JSF or FOAS.
Of the two, FOAS was by the late 1990's a much higher priority if the Harrier and Jaguar are already being replaced.
There would be no GR.9 upgrade, or that on the Jaguar. All available monies being sucked into the P1216 production and service entry.
Replacing Harrier and Jaguar with a single type would deliver savings through the 90's and the F4 would still get chopped. ADV Tornado might carry on patrols but the QRA P1216 would actually be used more once Putin get the Russian Airforce to probe defences again by the 2000's.
A USMC buy is the obvious US move, and I suspect that varying developments of Super Hornet and Fighting Falcon would receive more orders. CALF is likely the longer term result I suspect and JAST to JSF is potentially doomed.
But I will go further here, and say it doesn't matter whether it's the P1216 or some CTOL aircraft the UK funds, either way the UK would be better positioned than the interminable delays and cost overruns of the Typhoon.
After all Blue Vixen was funded. and forms the basis of Captor.
Zeus was funded.
XG40 to a production engine was funded.
fusilage developments was funded, and at that time a full fuselage was within capacity and capability of domestic industry.
FBW RSS CCV technology was funded. In the end the FBW effort was first handed over to the Germans as workshare and ended up having to dig them out of a mess on that front.
IRST was funded.
Cockpit interface was funded.
ASRAAM was funded.
Brimstone was funded.
Meteor was funded.
After 1985 domestic design was effectively dismantled for the Eurofighter and only now with Tempest is it being resurrected.