the key to any endeavor is the ability to think straight
It was once hoped that we would become KF-16's primary system integrators ourselves, as we have been doing for hundreds of USAF F-16s. Well at least we'll be getting the avionics source code from BAE now.
But it's another proof that politics has less and less bearing on what competitive choices we make in defense acquisition. The only reason why the NA branch was selected to perform the upgrade was because the US government insisted on providing US jobs, as F-16 is a US aircraft. Otherwise BAE would have been the sole winner if not KAI or Korean Air. I'm hoping our relations with the British industry will expand more to become our largest supplier, and also the largest customer from Europe.
As for the lingering questions, FlightGlobal reports that further electronic upgrades (which may include the HMD) could be added by Korea in the future. Right now we are developing HMD for KA-1, and if it's successful another one would be developed for T-50 (but shouldn't HMD already be a natural part of KF-16's upgrade though? First time I heard that AIM-9X would be operated on an F-16 without it).