Just saw this thread, so I thought I'd mention a few things.
Yes, the Argus was designed to make a quick buck. The original manufacturer made radios, and seeing an opportunity in 35mm photography, jumped into camera manufacturing. However, they had to have something that worked well (just ask Perfex and Clarus how American camera manufacturers can quickly die), even if their products seem primitive today. You really have to view the Argus camera line in its context. In the 1930s, it was really the only inexpensive 35mm camera available. It even made decent pictures. Then, they introduced the "modern" C-series line in the late 1930s. While the early C-series Argus cameras may seem "clunky" and "crude" today, they were quite innovative, feature laden, and gave good quality results. If you want to see just how "clunky" and "crude" an American 35mm camera can be, check out the Perfex Speed Candid. An Argus C-series camera seems refined in comparison. In 1938, the original Argus C sold for $24.78. During that same year, other rangefinder cameras sold for considerably more, with the Kodak Retina II going for $126.00, and the Welta Weltini (with Cassar f2.9 lens) selling for $69.95. It's important to remember that in 1938, there weren't many options for rangefinder equipped 35mm cameras, and with the Argus selling for at least 1/2 of what the competition offered, it's easy to understand why Argus cameras sold so well, and why the C-series was so insanely successful in the beginning.
However, I do believe the essence of the Argus camera line started to die off in the 1950s. The Argus C4 was really their last great camera (again, in my opinion), having the simplicity and affordability that made the C3 so popular. Their later cameras tried to incorporate many innovations from the 1950s, such as advance/rewind levers and coupled exposure meters, but Argus failed to execute them well. I've used/handled nearly all of the interchangeable lens Argus cameras, and feel the lens mounts/cameras show only that Argus was never really sure how to approach this "new" feature. Worse yet, by the time these cameras started appearing, the competition from Germany and Japan started introducing better cameras at similar, if not better, prices. For example, in 1960 the Minolta Super A was being sold for $129.50, while the Argus C-44 was going for $99.95. That's a difference of only $30, and the Minolta had a better 7-element f2.0 lens, a full range of shutter speeds, a better viewfinder, etc. Granted, $30 had a lot of purchasing power in 1960, but when the buyer had better options available at the same price range, why purchase the "gimmicky" Argus? The introduction of nice, inexpensive Japanese SLRs also had a detrimental impact for Argus sales.
However, the Standard C3 still was competitive in 1960, selling for $39.95, with a Kodak Pony II kit selling at $42.95 (the Argus was a more versatile camera). However, even in this market, Japanese camera manufacturers were starting to pinch down with camera like the Minolta A, a nice rangefinder equipped 35mm camera with a nice integrated RF/VF and good lens selling for $49.95.
So, after observing these changes in the competition from the 1930s to the 1960s, it's simply to conlude that Argus simply over-extended its ambitions into markets it wasn't well suited for, and ultimately was forced out of its original market by heavy competition from Japan.
Now, is the Argus America's FED? Is it America's Leica? No, it's something else. Argus is America's Argus. The FED was a Leica clone made with a focus on production quantity in Russia. The Leica was a high-end camera with the best precision available in 35mm cameras, intended for serious or wealthy photo enthusiasts and professionals. It's true that in comparison to a Leica, an Argus camera will seem like a toy. However, the Argus is still a capable picture-taker. So, if it's not a Leica or FED, what was the Argus? It was an innovative, completely original design intended to earn IRC/Argus a good profit while equipping as many Americans as possible with a 35mm camera. The more they sold, the more profit they earned. However, it had to work well, and be something people would actually buy.
In the end, that's exactly what happened... people bought them, and judging by the surviving specimens still clicking away 50-70 years later, it looks like they worked pretty damn well.
The Argus is it's own special camera...
1938 pricing data from the 1938 Wards Camera Catalog. 1960 pricing data comes from 1960 Elko Photo Products Photo Catalog.