So suppose a person in a wheelchair rolls into NavyOffRec office and says he wants to be a pilot... telling him we can't hire him would violate the American's with Disability Act, wouldn't it???
Let's look at the facts of the story the OP wrote. He was pulled over, arrested and charged with a DUI. The DUI portion was dropped BUT IT WAS STILL AN ALCOHOL RELATED INCIDENT in the eyes of the military. (NOTE: The OP never stated what BAC he had or whether it was a just a field sobriety test he failed, so I am going with the assumption that he had at least 1 drink prior to this event.)
What part of that ALCOHOL RELATED INCIDENT is not clear???
He was applying for and was selected for Air Force flight school and the Air Force decided to drop him due to having an alcohol related incident.
If the DA decides he wants to drop the DUI that is in the eyes of the law, therefore in the eyes of the law, he is innocent of DUI. But, in the eyes of the military, the individual was drinking (doesn't matter the amount, the OP consumed alcohol) and was pulled over and arrested by the police.
Supposed you and some buddies are playing flag football and during half-time you have a couple of beers. You go out to play the second half and you sprain and ankle or tear something in your knee. If you get to the hospital and they do a BAC, if your BAC is above 0.0, then you just had an alcohol related incident.
Did you commit a crime here? No. Does that matter to the Navy??? No!
It doesn't matter what the civil law says, the military will say ALCOHOL RELATED INCIDENT and you can expect there to be some repercussions.
That is the entire argument you are missing here. The military sees an alcohol related incident and decided to pass on the OP and move on to another candidate probably did not have an alcohol related incident.
Now that actually makes sense. I wasn't thinking of it from an ARI perspective, and if that is the reason they gave for dropping him then I understand. I was looking at it from a purely, not convicted of a crime perspective.