So are the French stuck with using the 12Z and GR-14R as domestic powerplants for fighters?
Probably yes (as long as we're talking about domestic engines, see post by B Bretoal2 for the other argument), and I'd agree it's a blessing in disguise. One of the takeaways from Calum's book was that the war winners (or in any case, workhorses) were engines that already existed, with a somewhat conservative but sound basic design, and that just had a huge amount of elbow grease applied to them in countless incremental improvements. The Merlin arguably being the poster child for this argument. Conversely all the exotic concepts were largely failures, and even when they managed to enter service before the conflict ended they gave no end of trouble, such as the Sabre.
There are maybe two exceptions to this rule of thumb. First, the R-2800 that first flew after the war was already well underway in Europe, and still managed to be produced in the tens of thousands, producing not only a lot of oomph but was also well regarded wrt reliability. Secondly, concepts that were so radical and promising that even when immature they could overcome the elbow grease being applied to established engine families, like the jet engine.