Very well put.
It is far better, for Pakistan, to have in-depth anti-aircraft defences than to struggle to keep up with buying big, shiny toys that burn up a hundred years of maintenance for thousands of poor and starving families.
Your point about not having intentions to attack India is also very relevant, in a back-handed kind of way. If you invest in these safeguards, and not in F-16s, your defensive intentions become very clear, and there is bound to be an immediate lessening of the tension in Air Force circles in India. If the trend continues, expect to see a massive shift of resources towards the more powerful menace that India has.
I only wish the Pakistan Army would do something similar. In terms of policy and strategic interpretation of that policy, I mean.