TC,
I agree that the latest decision by the Canadians is a little surprising, but in the situation they are currently in, what would you do?
Option 1 - the current plan (NB - this has capability gap written all over it)
Option 2 - upgrade/extend Sea King
Option 3 - Merlin. Expensive and politically embarrassing, but at least it is a proven modern ASW type
Option 4 - Something new. NH-90 anyone??