Although I'm not happy with how slowly Aviacom has appreciated the Argus cutter issues and dealt with them, the way things get banned these days I wonder about the philosophy of doing so.
The Argus clearly has a problem cutting loops in some conditions. I can see rig companies wishing to be dissociated with a "loser", but some companies sure react fast and strongly once the word gets passed around, to ban the Argus in their rigs.
I bet the US FAA rules on manufacturer approval for AAD installations is driving this process, that rig manufacturer don't want to be linked officially to a product with a problem, that's physically installed inside their rigs. Wusses. They don't ban other potentially dangerous things that people might jump with.
Unless manufacturers have a specific rig configuration that changes the odds of something going wrong, then if there's an industry wide warning they don't really have to jump on the band wagon with their own specific rules.
The idea of banning an AAD temporarily also depends on one's philosophy on AADs.
For students and tandems, there's pretty much agreement that they should be protected with a decent AAD. But for experienced jumpers, the situation is different.
The Argus isn't much danger to others on the plane or the sky, as it isn't firing inadvertently. It would only be a problem if one smoked it low, had the loop not cut properly, and go up again without checking one's AAD. That could be dealt with largely by bulletins about increased inspections, just as is done with aircraft part problems while waiting for a long term solution.
The Argus also creates little increased risk to the jumper if they behave properly. An Argus can only impede a manual reserve pull if you pull your reserve a lot lower than you should, if one has a certain cutter location and the Argus happens to cut the loop poorly just before you get the reserve extracted.
If someone's philosophy is that AAD's should be mandatory, then the Argus is doing a lousy job and perhaps rigs and jumpers should be grounded.
But if one's philosophy is that AAD's are an optional safety device, then Argus' are still useful. If you lose altitude awareness or are knocked silly in freefall, it quite easily still has a 90+% chance to save your life. That may be a good tradeoff against a chance of jamming up (depending on the rig) if you pull your reserve below 1000'.
(My biases: I'm in the group who believes that AAD's should be optional once off student status. And I've got a Cypres 2.)
As much as Argus' cutters and their response to the problem sucks, I'm not sure Argus' should all be grounded.