There seems to be a bit of a sunk cost fallacy going on at ITER.
That said, it's big, design by committee, slow, meticulous, etc.
It's not a fail fast market-driven experiment.
Also, most of the money is spent on the fundamentals, planning, developing operational knowhow, basic material science and plasma vessel engineering.
All in all, it could be better, but at least ITER is actually being built. MIT's ARC is still somewhere between "secured funding for a scaled down prototype" and actually will build something. Though it's great news, that they got funding (from Eni, an Italian energy company).
We should look at a broader range of ways to do fusion and then finance the ones most likely to work.
As you said, most of the money on ITAR is hardly directly related to fusion. A few companies get lots of money to do research to hit very specific performance that are specific to ITAR. The problem is this does not really build a broad range of companies that work in fusion.
It was simply to early to engaged in such a huge project especially because the technologies are evolving so fast outside of the project and some parts of the design are already not up to date 20 years before it will really be ready.
No. Q is everything in fusion. Scale is one way to improve Q in a Tokamak. The problem with improving Q by increasing scale is that it makes the reactors uneconomical. A reactor the size of ITER cannot ever be economically viable, even was capable of producing massive amounts of electricity.
Luckily, scaling up is not the only way to increase Q. The better way is to use more powerful magnetic fields.
Put more eloquently than I can: https://www.youtube.com/watch?v=L0KuAx1COEk&t=43m47s
Look at the numbers. The power density of a PWR fission reactor core is 100 MW/m^3. If you consider the volume of the primary reactor vessel instead, it's 20 MW/m^3.
The power density of ITER is 0.05 MW/m^3 (counting gross fusion power). Even if you just include the volume of the plasma, it's 0.6 MW/m^3.
What about higher field concepts like MIT's ARC reactor? If you look at the paper on arxiv where details are given, the power density is 0.5 MW/m^3 -- 40 times worse than a PWR.
The low power density is devastating to the economic case for fusion. Magnetic fusion reactors will be complex, expensive things, with superconducting magnets, complex cooling systems, breeding blankets, heating and control systems. They will be much more expensive per unit mass or volume than a simple PWR reactor vessel. And much of that complex system will need to be periodically replaced due to neutron damage. If the power density is 40x worse they cannot possibly compete.
Yes, (SP)ARC is better than ITER. But ITER is so horribly bad that a reactor can be an order of magnitude better and still not have any real chance of competing.
If you give me a machine that outputs 50kilowatts, I'll happily give up a cubic meter of my house for it...
The size and complexity also directly affect reliability. There is more to go wrong in a fusion reactor than in a fission reactor, and repairing anything there will be difficult because hands-on work will be impossible.
And of course eventually clean (as in proper reprocessing/recycling) fission energy would be great too, but that again is stalled, largely due to nuclear armament proliferation concerns.
I accept that I'm talking based on extremely vaguely remembered statements from many years ago...
After all, if the goal was really these ancillary things you mention, many of them could be studied in other environments.
Some things are so complex, like nuclear fusion and the Standard Model of physics, you have to build big complex things like tokamaks and particle colliders to be able to tinker with them. No one should be surprised or put out by that, it’s part of the process.
That means it's inescapable that there will be losers, regardless of how much is invested. There's no guarantee that fusion will win this competition, and good reasons to think it won't. Fusion may well go into the bin (with lighter than air passenger aircraft, superconducting digital computers, and MHD coal powerplants) of technologies that just couldn't cut it.