Chile only have one Phalcon and I’d be amazed if it’s anywhere near fit for purpose nowadays. I’m not sure it even met Chile’s expectations when they took delivery of it over 25 years ago! If they decided to buy the E-3D, I guess they might buy one as a direct replacement and others as spares. It would be a significant upgrade to Chile’s current capability for, relatively, not a lot of money.
Could be a win-win but wouldn’t be surprised if the Israelis are trying to tempt Chile with an alternative deal.