Well, it's not my argument. It's the argument made by the Air Power Australia and Rand Corporation analysis. The "handling" of those simulations since has shut up complaints but the complaints certainly seemed valid to me. Fact is, the F35 does not have the thrust/weight of two engine designs. It cannot carry the same weapons load. It is more observable and lower performance than Russian and Chinese fighters.
The observation you're making about what the next generation of sensors and avionics will be capable of can be applied to almost any aircraft. Almost all those benefits could be applied to existing F-18's for example. It's true the US has always enjoyed a serious advantage when it comes to better avionics. It's not true those advantages are unique in any way to the F35.
I suggest look at the wiki site and especially the Air Power/Rand studies:
http://www.ausairpower.net/APA-2009-01.html
The contention is, that single engine thrust/weight cannot compete with double engine thrust/weight, and this is something we've known for decades. There are lots of reasons that F-16 was never made a front line fighter, and these all relate to the reduced thrust/weight of single engine fighters.
And just saying, you need to do a hard analysis of how the thing will be used. When you have the B variant with the fan, you lose 1/3 the fuel. When you add the external weapons pods or carry missiles, bombs or tanks on the external hardpoints you lose your stealth, speed and range. It's a single airframe designed to be configured 3 different ways, and then loaded 30 different ways, so generalizations about it are hard to make. It is not hard to show though, that the greatly reduced thrust/weight is a serious concern when up against other 5th generation aircraft.
Just in summary, this thing was designed to be cheap and it is not. The stated goals of the program were that development costs aside, the procurement costs would be the same as our current front line fighters, the F-18. They're not. the current projection is the plane will cost more than twice as much. One needs almost no analysis past that. In planning for cheap, we lost the second engine and all that entails, and now we find the plane is not going to be cheap.
Spend time with the wiki piece too. The sheer numbers of problems with the plane at this late date are shocking and alarming. 20 years and the helmet mounted display does not work. How FUBAR is that?
"Courage is not just a virtue, but the form of every virtue at the testing point." C. S. Lewis