What are the realities of concurrent disability and retirement pay?

I think removing it is unfair. Retirement is what you've earned for your many years of service. Disability is compensation for lost earning potential moving forward. Those two things are not the same thing, and making any type of budgetary argument against someone legitimately receiving both it is wrong. I don't care what the cost is...it's the right thing to do.

Imagine a scenario where a 44 year old helicopter pilot is involved in a flight accident, just before he/she retires at 22 years of service, but becomes paralyzed and blind in the accident. They've already earned retirement benefits for their 22 years of service. They no longer have the ability to work as a pilot for the next 20+ years, so the disability payments compensate them for that lost earning power. They shouldn't have their retirement benefits reduced to fund the disability, and they shouldn't give up the disability to fund their pension. They should get both.

Unfortunately "fair" has nothing to do with it.
The military vet is an easy target, underrepresented and a minority overall.
The same people that vote their own pay raises yearly, have control of the purse strings for Vet retirement pay, and there is almost no political downside to cutting funds to retired or disabled vets..
Yes there will be a loud outcry, but not from enough constituents to make even the slightest difference in the decision they make.

IMO even the 50% offset rule is theft. Service Members who did not retire get a full measure of disability from the VA. Those that retire have to pay for their own disability until they hit 50% rating. In other words the VA steals from the retiree's check to pay them back. VA disability and retired pay should not be intermingled at all.