I very well know the reasons behind the creation of ADA, and brain trust behind snubbing HAL. And surprisingly it also cuts into the entire timeline of How IAF killed the HF24 re-engine efforts and continuous development as it posed a significant threat to IAF and MoD's spending plans.
An Irkut Product produced By HAL in Nasik costs 54 mil, and ADA product produced in Bangalore costs 68Mil, sure ADA has no part to play in it. ADA takes what 4 decades to produce an aircraft that IAF will accept, and there is still hope in this great enterprise. HAL takes 6 years to field a trainer while producing MKI, AJT's, LCA, LCH, ALH, and Overhauling Mig21's, Jaguars, Cheetaks, dorniers, MI17's, Mig27's (all while not being paid for the last two years) thus it should be shut down.
I do see the sound logic in your assessment of ADA.