Armed Scientist
I work at the Boeing-St. Louis Phantom Works, ex McDonnell Douglas Corporation. I supported our JSF proposal work in 1999 and 2000 in a proprietary role.
The government and the contractors are interested in export sales of all versions JSF to reduce the cost. Foriegn governments like STOVL because large deck carriers are not required - you can operate from a barge. This is part of the reason the USN does not like STOVL, because a truly capable airplane threatens the large deck carrier Navy; the admirals adore their big boats!
British Aerospace will be a 25% partner with LM if they win the contract.
Both airplanes have propulsion problems. Engine reliability is not the principal concern. The LM design uses a lift fan arrangement consisting of a ducted fan and gear box driven by a long, clutched drive shaft taking power from the fan section of the engine. A simlar MDC design I worked on in the early 90's was extracting ~25000 hp from the engine, the 10 to 12 foot long shaft turning at about 10000 rpm. We were proceeding on faith that a lift fan assembly could be designed and built; no one had ever built a hypershaft and gearbox with more than a thousand or so horsepower. We couldn't figure out to shed the huge amount of heat genrerated in the lift fan gearbox. I recommended to the project manager that we needed to start building gear boxes immediately (1990). Now it is 2001, and LM has clutch and gearbox reliability problems - this is the main reason the government is getting nervous about proceeding with the STOVL airplane. The nozzle born flights X-35 made were risky flights for publicity (mostly; this flight was an add-on to their original flight test schedule) IMHO, but that is experimental flight test (and the risk was not so high to prevent the flight; every detail would have been considered extremely cautiously before go ahead from the flight test director).
I'm not saying anything about the performance of Boeing's propulsion system, because it is probably competition sensitive.
The flight tests of X-32 and X-35 were both successful (no show stopper problems, or fatal crashes), but these are concept demonstrators, nowhere nearly ready to go to war. The fact that the airplanes flew well is just one requirement (almost a secondary factor) in a long list that must be satisfied to produce a fighter airplane.
These airplanes are being procured on price. Once the price is set, the vehicle weight is determined, and once the weight is known, the fuselage length is set (I know it sounds crazy, but it is only a little simplistic; fighter airplanes are bought by the pound) - and this is the airframe's principal weakness (both contractors), the fuselage is too short to install the equipment efficiently, especially where there is an emphasis on maintainability. Internal weapons carriage severly complicates the problem by using up volume that would normally be occupied by equipment. I bet the airplane will grow by three or four feet in length.