A big reason for the huge price tag and many delays has to do with the very broken military acquisition process. It's a mess, a huge problem that not many people have much insight into and fewer posses the real motivation and capability to change.
You can make a fairly valid parallel can be made with web designers and bad clients. You start off with a clear goal and reasonable costs and deliverables, and through iteration after iteration of needless revisions, terrible requests, and changed requirements you end up with a clown hat, a fart button, all in comic sans at 10x the original estimate.
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Nobody wants to dogfight – the F-35 wasn't designed for it and modern strategy has nothing to do with it. You destroy the enemy with smart missiles long before either of you sees the other – F35 stealth is designed to delay detection as long as possible. This report takes the test completely out of context. It wasn't a wargame between A and B, it was a very specific situation under severe restrictions used to test the boundaries of the F-35's role. A real wargame would end with both sides never getting within miles. Not understanding the context of why the test was done leads to real misunderstanding.
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As for drones - it is true they have a huge future, but they aren't the only solution. Modern air superiority battles are as much about stealth and electronic warfare as anything else. If your entire enemy is remote-controlled robots, your real target becomes the communications. There is very real value to having a human in the theater of battle – many of the strengths of the F-35 revolve around it as a platform for the interaction of many different communications, intelligence, and weapons assets ... the pilot is the command and control center for a whole network of activity which is much more resilient than remote control satellite RC planes and missiles.
Dog fighting only happens when absolutely everything else fails and both sides can bring each other into the stone age of point-and-shoot flying.
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In a real war with a competent enemy, the first target (if we aren't all erased in a nuclear inferno) is going to be communications satellites.
Remember that a significant portion of how America fights battles is winning wars on paper so nobody ever thinks it's a good idea to start a real one, and by that I mean a war against a competent enemy playing at the same level – not regional conflicts and proxy wars like we've been fighting since WWII.