While I agree that the military deserves the absolute best, I feel that we have gone beyond what we truly need as a free society.
Not sure what you mean here. Building what most people consider to be "absolute best" has served the US very well for decades but have we really built the very best airplanes we can without regard to cost? No, not really, but you do reach a point of diminishing returns as every plane has tradeoffs in the name of cost. Also, just to keep things in perspective, while the F-35 will probably have an actual per unit flyaway cost of closer to $200M versus the F-18E/F's $55M is this increase really extraordinary? The F4 Phantom had a flyaway cost of about $2M in the mid-sixties but the F-14A which came out in the early 70's cost $35M. In this case, the F-14 did absolutely everything better than the F4 even with the crappy TF-30 engines so was it worth 18 times the cost? It and the F-15 were the premier air superiority fighters in the world for decades, far longer than any other fighter aircraft in history so yes, history has proven that they were worth the expense.
It is meant that our country needs more bang for our bucks and we need to be cost effective.
Absolutely. The switch from twin to single engine is part of the attempt to be cost effective as is the single seat, both are compromises. I personally disagree with these decisions but there's no doubt they were intended to keep costs down. The unfortunate result will be the loss of some aircraft to engine failures and less effectiveness in high task load environments. It's unavoidable but I'm sure there's some number cruncher deep inside of the five sided windtunnel that has figured out that the loss of a few aircraft (and pilots) is cheaper than providing two engines and two aircrew. It's just the cold hard facts of life.
How much will we realistically spend per unit? Is 300 million per unit a more realistic cost?
The $200M figure I quote is based on studies of what the airplane will actually end up costing including amortized development costs and GFE. The Pentagon's program manager claims a much smaller cost of (IIRC) of something like $120M (which I don't buy). However, when you consider the difference in price between the F-4 and the airplanes that replaced it I think it's reasonable to consider a four time increase over the F-18E/F as realistic and acceptable. Of course whether or not it's affordable given the debt being racked up right now is a different question.
At that point is it not better to simply continue a scaled development of the F-35 and bring back the F-22 at a much cheaper per unit cost? I know the roles are different and the F-22 is not navalized (sp?) but at what point do we risk insolvency of the DoD budget to support the F-35 along with all the rest of the programs?
It's completely unrealistic to consider a navalized version of the F-22, it would be a completely different aircraft (even if it looks similar). The Navy planned to build it's own version of the F-22 in the late 80's. The F-22 came out of the ATF (Advanced Tactical Fighter) program when the YF-22 beat the YF-23. One of the reasons the YF-22 won was that it was more adaptable to being built as a carrier fighter called the NATF (Naval Advanced Tactical Fighter). I never saw the NATF concept itself but I did see its cockpit drawings while at VX-4 in 1990. Interestingly enough, it had a wing-sweep control.
If you look at the YF-22 and YF-23 it's pretty obvious that the YF-22 airframe was much more suitable to a swing wing than the YF-23 due to the way the air intakes pass upwards through the mid-fuselage area. Bottom line though is there would have to be major changes to the F-22 to navalize it and that program would also be as expensive as a totally new aircraft program.