Am I being too pessimistic/paranoid if I feel like they're going to pick another low-complexity/low-cost mars proposal like InSight more-or-less by default, because it's more politically favorable per the mars hype of recent years?
I am generally curious how much a role agency (and higher) politics play in the selection process.
Well, you need to define what you mean by "politics." I would say that the selection of Discovery and New Frontiers missions are probably the least political selections NASA does. By that I mean that neither the White House nor Congress is telling NASA what to do, the agency is making the selection based upon their determination of the scientific and technical merits of the proposals, how they fit into the overall portfolio of missions, and similar considerations. In fact, the entire purpose of creating the Discovery and New Frontiers program lines was to take the politics out of the equation.
Now you could still call that "political" if you want, because NASA doesn't operate on its own--it is part of the executive branch. It cannot do things that may anger the White House and congressional leadership without facing possible consequences. And there have been situations in the past where Discovery and New Frontiers missions either were, or could possibly have been influenced by bigger "political" issues. The most common political issue is the desire to stay within the budget caps for the programs.
I'll give a few examples:
-Prospector
AA for science Wes Huntress picked the cheapest of the mission proposals because he wanted to send a message to proposers to try to keep costs down. (I heard this from him directly.)
-GRAIL
The mission most likely to stay within the cost cap (and in fact, it came in under budget). It was no secret that AA for science Alan Stern wanted cheaper missions and had warned people repeatedly that he thought that missions going over-budget was hurting the program. So he was sending a message. Also, it was a lunar mission, and the president had announced plans to return humans to the Moon. Maybe that influenced Stern as well. That said, Stern also was interested in lunar missions in general.
-OSIRIS-REx (New Frontiers)
The mission most likely to stay within the cost cap. I don't think the fact that this is an asteroid mission had anything to do with NASA's new focus on asteroids. I think it was simply an effort to stay on budget.
-InSight
The mission most likely to stay within the cost cap. Now you could also suspect that AA for science Grunsfeld had been talking a lot about Mars and that influenced the decision. But I think that it probably really came down to budget. Plus, the ASRGs were starting to run way over budget too, so NASA was possibly going to get stuck with a mission that was very expensive (TiME or Comet Hopper) plus a power source that was going to run over budget.
Now I'd also argue that budget is simply something that has to be considered all the time and because this is government, it is part of the political system by definition. If you go back to my definition of "political," here's the way to look at it: the White House and Congress provide NASA with a budget line for Discovery and New Frontiers. Then they stay hands off.
As long as the projects do not go over budget, then OMB and Congress don't pay attention. They leave NASA alone. As soon as the projects go over budget, then OMB in particular starts asking questions. NASA has to start looking for money from other projects to pay for the overruns. And it unbalances the overall portfolio. So the best way for NASA to keep OMB and Congress from poking around in their business is to select programs that will stay within budget, and to manage them carefully so that they don't go over budget.
And this is where once again I will sound the trumpet for the decadal survey process. It works amazingly well at keeping politics out of the selection process as much as possible. The decadal survey is also a necessary, but not sufficient, condition for science programs to happen. If it isn't in the decadal survey, it's very difficult for somebody to come along and whisper in a congressman's ear and get a program to happen. The reason that Mars 2020 exists, and the reason that Europa Clipper now exists, is because the decadal survey said that they were worthwhile programs. And the reason that some other programs did not get approval despite lobbying Congress for them (like New Horizons 2) is because they were NOT in the decadal survey.
It's going to sound maudlin, but the U.S. has developed a pretty good process for picking science missions, and you can be proud of the people--in the White House, Congress, NASA, and the scientific community--who helped establish it over many decades.