Actually, the Diefenbaker Conservatives have prior claim - the destruction (literally) of the Avro Arrow (the most advanced fighter of the time) at the behest of the US government because the Bomarc nuclear SAM missiles would supposedly make the Avro obsolete (funny how we still need jet fighters and bombers more than half a century later, isn't it).
I have to correct you on that there, as the CF-105 wasn't designed as a fighter -- it was designed as an interceptor. Interceptors (and in particular the CF-105) weren't designed for areal dogfighting with other fighter aircraft -- they were designed to take down larger aircraft such as bombers.
The purported reason for cancelling the Arrow project was that the world was moving away from nuclear capable bombers towards ICBMs. The threat that the CF-105 was designed for was Russian bombers flying over our northern coast, but the advancement of technology was making the need to fly bombers unnecessary, hence a straight-on interceptor was no longer necessary.
Indeed, today very few countries design or purchase straight-up Interceptor aircraft for their air defence. Fighter jets became advanced enough back in the 60's and 70's to take on the role of both fighter and interceptor as needed. A multi-role fighter-interceptor was a much better investment for a smaller country like ours.
You are also somewhat incorrect concerning the BOMARC missiles. While the US designed them to be nuclear capable, and the initial intention was to have Canada's inventory equipped with nuclear warheads, in the end Died the Chief caved into public pressure, and the nuclear option was scrapped. Eventually, of course, all of the BOMARC missiles were scrapped -- the mission they were intended for (destroying bombers flying towards the DEW line) evaporated in the face of ICBMs.
Today we face relative little danger from bombers from Russia flying over the north pole, and even should that happen we have modern advanced middles to take care of them. There really is no place for dedicated interceptors anymore, and there hasn't been for decades. Now none of that is to say that Diefenbaker was right to scrap the CF-105s -- the way the completed jets and all of their plans was dismantled/discarded/destroyed is a national disgrace. My family knows very well how this went down and the pain it caused -- my grandfather was a mechanic at AV Roe who worked on the Arrow project, and who became unemployed at the projects termination. His pride in the Arrow project and his regret at its destruction (and general anger towards Diefenbaker and his cabinet for causing it to happen) lasted until the last of his days.