Frank,
It's second hand, but I understand that PADS was looked at by the military; specifically their research and development unit (ARDU). I just happen to have a relative who knew these guys because they were kind enough to assist (in their own time) with getting a particular sort of sporty homebuilt flyable.
Word was that PADS, as assessed by these guys, was dangerous. It's a long time back, but I seem to remember it went to the way that the tether was deployed and the risk of it getting sucked back.
I do not claim to be an authority, but I gather that despite the publicity at the time (including airtime on TV), PADS was not all it was cracked up to be.