The biggest factor leading to x-35 being selected as JSF was because x-32 had a hard time to solve the exhaust loop back to the intake, while x-35 has no such problem with it front fan pushing cold air to block the exhaust from looping back to the front intake. Furthermore, x-35 was able to take off vertically and transit to horizontal flight to break the sound barrier and eventually land vertically was the nailing factor.
Your program’s title is a bit of a clickbait, suggesting there were some superior unknown black tech that the X32 had, when you only talked about how ugly it was.
X32’s lift system has a major flaw because the plane can ingest hot exhaust air which can stall the engine. This is one of the reasons why it was not selected.