Hi, sorry seem to have forgotten about this reply. Just noticed again.
It's mostly done to prevent platform obsolescence but upgrade a non-AESA as much as you like, the jump to AESA is always a quantum leap in capability.
Most of perceived superiority of a fighter based radar dissipates once you remove the ~40 year gap between the E-3's base technology and that of F-22/35 AESAs.
No next gen fighter has demonstrated such a capability against an E-7 for example. Reason why its now positioned to replace E-3.
The type of platform depends on needs & launch options of the user, but my point was that next gen fighters are not meant to serve the role of a AWACS at all.
F-35 for example is only designed to operate its radar in small pings or bursts, which then serve as cues for EODAS to take over the tracking passively, minimizing the probability of intercept. VLO fighter doctrine simply doesn't allow for acting as illuminators for all warfighting elements in theatre (all of which don't have acquisition or tracking capabilities of their own) as its directly antithetical to their role as low observable attack platforms, continuously operating one's radar at full power negates it.
Manned, unmanned, fixed wing, rotary wing, whatever the case may be, AEW & Battlespace Management will be offloaded to a different platform for the foreseeable future.
An AEW radar of the same era & base technology (size & weight of TRMs, and type of substrate) can always have far more TRMs, far more transmission power (thanks to ability to house larger dedicated APUs) and a consequence a far greater ability to acquire and track targets compared to a fighter radar of the same generation.
The equation gets thrown out of the window if your fighter radars are two or three generations ahead of your AEW though (which is currently the case with most Western AFs. However it's set to change in the near future).
There was a time when fighters were entirely dependent on AWACS. Current fighters enhance the capabilities of AWACS, but even that time's swiftly going away. With more modern jets coming up, AWACS have been relegated to the second circle, outside the family of systems. So an ISR/AEW drone will provide everything necessary to the fighter, to the point where the fighter itself won't have anything capable of active emissions, minus the comm system. In the meanwhile, dedicated AWACS will be taken out in the very first day of the war with standoff missiles. Hell, their expected survival time is measured in minutes.
The E-7 plan is a stopgap for a new drone-based AWACS capability being developed by NATO after 2035. So, when new gen jets step in, the time of the traditional AWACS will be over.
Tracking targets is all about software and processing. Yesteryear fighters did not have enough processing, while AWACS and ground radars did. Now fighters have all the processing they need. But what it means is with fighters now tracking 1000 targets, ground-based radars will track 10,000.