The biggest threat/problem with the J-10CE is that it gives the PAF an affordable way to rapidly scale up its long-range air-to-air capability.
The IAF will have to plan for a potential 90-strong fleet of J-10CEs. But it can't bank on attrition or serviceability rates to do its job. The J-10CE is China's mainstay fighter, so there's always going to be a steady supply line of spare parts, replacement jets, etc.
You can't guarantee that with any European fighter. E.g., the IAF's buying used M2Ks for spare parts.
In a weird way, Egypt, UAE, and Indonesia did the PAF a solid by taking up spots in the Rafale's production line-up. This might explain why India is now seriously focusing on new homegrown 4.5+/5-minus designs like TEDBF/ORCA. I honestly hope Bangladesh figures out the Typhoon or, heck, KF-21 situations so that the IAF's full-up forced to look in-house. No doubt that'd be a huge boon for the Indian industry, but the PAF will bank on India's institutional issues to slow TEDBF and ORCA, one way or another.