I don't buy it (radio compromise).

Is the opportunity for joint operations worth offering our allies access to America's military hardware?

For this, I say NO. We seem to play in our own sandbox so much and are so relunctant to share anyway - we may as well keep our best stuff to ourselves.

Could the primary means of communication really be cracked?

I want to say NO on this one. While I am not impressed with the SINCGAR, I still believe the report is overstating the communications break. Despite the improvements to the radio, it still frequency hops ridiculously slow. And the late net entry "feature" to me implies that many of those hops are repetitive for synchronization. I think jamming the thing was difficult in the 80s, but probably a trivial task today using adaptations of such equipment as the WinRadio. Now, the encryption is likely to still be intact - after all, the NSA is pretty good at what it does. Besides, if the Iranians were supplying SINCGAR listening equipment ... one would think such equipment would have been provided to the more prominent insurgent groups in Iraq. The guys we were capturing were largely using maritime radios and GMRS/FRS radios for their communications - nothing even remotely advanced for eavesdropping. I think the compromise was more likely a function of the Israelis not using the secure modes in which case any radio scanner can listen to the SINCGAR.

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