in my memory they have extended the range in recent tests but I would appreciate if you can link any resources. My memory is vague now.
From what I see, THAAD has only been tested once against an IRBM back in 2017.
And that IRBM target was almost certainly not manoeuvring.
Furthermore, Lockheed Martin want [4 years and funding] to develop a new THAAD-ER interceptor to deal with HGVs carried on the DF-17.
Nope. warheads are carefully designed and only work when they are triggered as design. They are much more than 1000lbs explosive or iron blocks.
‘roughly follow the same trajectory’ normally means 100km CEP.
Think about it.
A DF-26 re-entry vehicle with payload is 1200-1800kg
A THAAD has a small hit-to-kill warhead in relation to the above. If you can find out the weight, that would be useful but I suspect it has not been released.
A THAAD warhead would breakup the incoming reentry vehicle, but it simply doesn't have the energy to really change the momentum of the overall incoming mass. Of course, the higher the intercept, the more the level of dispersion. But if the intercept is only at 40km, I would expect very little in the way of dispersion. Remember that tungsten ball bearings have a melting point of 3422C.
Plus you haven't addressed how the defender will have to spend a lot more money on THAADs than the incoming DF-26s.
A THAAD battery with 48 missiles costs $3 Billion.
CSBA have an estimate for a 4000km IRBM at $21 Million each. So 48 DF-26 missiles would cost $1 Billion, which is 3x less.
So China should easily be able to overwhelm THAAD based missile defences with DF-26s
In summary, I see too many points of failure and disadvantages in US missile defence being viable.
So if the US wants to get into an arms race between DF-26s and THAADs, the Chinese military should welcome such an outcome.
But I don't really see how the US military can avoid this. There are so few possible base locations in the 2nd Island Chain for the US to use, and they have to have some basing in the 2nd Island Chain if they want to project military power to China's coastline.
In the longer-term, I don't see the US being able to sustain a credible military presence in the Second Island Chain, if the US-China come to blows.