Well or starters, the whole "obsolete" argument is certainly debatable since as I pointed out we traded one interceptor for another, foreign interceptor. (particularly at a time when every other first world nation was building their own) Second, you keep throwing around this 3% figure, which you freely admit is derived from your own calcs. Now I'm by no means an Arrow expert, and its no secret that there was indeed a lot of money being sunk into the project, but I haven't seen anything to substantiate that astronomical figure.
As far as I'm concerned, Dief got elected largely on a platform of reigning in "Liberal" over-expendatures. The Arrow was unfortunately an easy target, especially when the US was offering to sell us the "next best thing" to the Arrow. And from I've read, the cost in lost jobs was closer to 25,000.