Legitimate concerns. TIN bought a couple rare Arc4s that may not be able to be served by warrantee. A number of us, myself included, bought Arc4s with the understanding that they could be retrofitted with tailstand/lanyard ends later on.
The engineering isn't surprising though, in retrospect. The switch problems lie in both the head and the tail. Both have to change. Arc may not be able to upgrade existing heads to the new switch economically.
A key component of the Arc equation has always been their customer service and willingness to "make it right". I bet that Peter will extend the Rev2/Rev3 exchange to cover people who are unhappy - not just Rev2s that malfunction.
Update on mine: My Rev2 works for the most part. Not always though. Sometimes it drops out without my touching the button, pauses several seconds, then comes up with the RFS. This problem has been reduced in frequency since I started padding the battery negative contact with a scrap of folded aluminum foil. Yesterday the light went into a funk - stuck in secondary output and couldn't be shut off or made to change level. The Arc4 seems more likely to malfunction when I first pick it up. After a few minutes of use it seems to settle down and behave properly. Odd. These intermittent issues are why, should I decide to return the light under warrantee, I will send along a log for the last month or so of use to help Arc identify whether or not the light qualifies for replacement. Meanwhile, I'm still using the Arc4 in rotation with several other lights. It's pretty useful, getting overall more service hours than any other light except for my Infinity-powered nightlight.
One thing for sure though...I won't send the Arc4 back unless Rev3 is out and proven to be perfect (or reasonably close).