I watched a TV special last Friday regarding the Canadian government's relationship with the F-35, and it indicated at the end of the program that there still exists an escape clause for Canada, and that no final decisions have been made and no funds have been paid. Independent government audits also confirm the deceptive price tag per plane that was given initially, and the actual cost that would take place if its signed-off on.
In terms of what aircraft I feel Canada should choose, I was initially pleasantly surprised when the F-35 was announced as Canada's choice. Unfortunately, as time went on, delays mounted, costs ballooned, and shortcomings became evident, I began to lose my faith in it. Knowing what I know now, had it been my decision eight years ago or so, I would have steered towards the F-18E. I have heard that it has some capability shortcomings over the previous models, but the fact is that its an aircraft that technicians are already loosely familiar with, it has the 2-engine reliability, and its a far less costly alternative. I've even read that it can boast some miniscule degree of stealth capabilities, due to its main body shape and slightly radar-absorbing coverings.
I think that they should have given the F-35 a pair of lighter engines instead of the single unit, kept the wingspan of the Navy version for all variants, and downgraded the stealth requirement, allowing it to carry more weapons and fuel externally, but perform limited stealth missions in "striped-down" mode.