Yep, it was serious for a week or two, until it became clear that the USAF wanted to hand over the aircraft but not the budget that went with them. Also, because it appeared that the goal was to remove the Army entirely from the deep strike mission, which it was expanding into with things like ATACMS and the use of Apaches for deep attack missions rather than just CAS.
Found an interesting paper looking at the same issue from the Army perspective.
http://www.dtic.mil/dtic/tr/fulltext/u2/a264044.pdf
Very interesting reading. I had hoped that the intra-service bitchiness had gone away, but I guess not. Even though I am an old Air Force weanie, I have always thought that ever since the Army Air Corps separated from the Army to become the Air Force they have become the bully on the block and have treated the Army very poorly. I understand that they think they are defending their turf, but what really is sad is that many of the projects that they blocked Army Aviation from pursuing, the Air Force never provided to the Army adequately anyway. The Air Force of the 50s and 60s thought they could win any war without soldiers by strategic bombing and ICBMs. It turns out that they were wrong. I am so glad that the Army was able to get Air Cav Divisions up and going, even though the Air Force thought that it was a big mistake. I wish they could just cooperate and work together for the common good. Thanks for sharing this.