Actually they're reporting now that they'll be $400 million per aircraft. It would appear that this original $1.2 billion report wasn't all that truthful. That's just to get the program started and 2 Sikorsky prototypes built. Ultimately 23 will be built at a total cost between $16-17 billion.
Why can't you keep maintaining H-3s? Same reason why they got rid of them in regular units. They don't have the capabilities of newer aircraft and lack of parts. Now I'm not advocating a $400 million dollar aircraft at all but they do need something newer and more capable. In my opinion they could have just upgraded their H-60s at a fraction of the cost.
The argument really isn't about needing a new aircraft, it's about how our contracting system has spiraled out of control. Depending on who you talk to the F-35 is or isn't being more capable than current fourth generation fighters. What's undebatable, is the price being paid for the F-35, regardless of what it can do, is outrageous. It's taken 20 yrs from drawing board to service, coming in too heavy, over cost, and multiple flaws. Sadly the days of the 120 day P-51 wonder are long gone and our defense will suffer because of it.