Official Explanation
The credited answer is (C). Some planes crash because they are oncoming, going in opposite directions headed toward each other, but sometimes planes going in more or less the same direction just drift too close and crash. If the anti-collision device only signals planes of oncoming directions, then it wouldn't prevent crashes of this latter kind. Yes, the anti-collision device would help prevent some categories of crashes, but it still would be possible for two planes, flying more or less parallel, to come dangerously close to one another without the device giving its warning. This points out a significant hole in the aviation analyst's argument.
We don't know what kind of planes were involved here, but only the DC-10's have the anti-collision device, so this scenario could have involved planes that didn't have the device at all. If planes without the device almost crash, that's certainly no reflection on how effective the device is. There is too much uncertainty in this answer. Choice (A) is incorrect.
It's true that onboard injuries would be undesirable, but they're better than a mid-air plane crash! The argument is simply about preventing a mid-air plane crash --- it makes no specific promises about the health and well-being of the passengers. Choice (B) is incorrect.
As long as the anti-collision devices turn on with more than 3 minutes warning for each plane, it doesn't matter whether they turn on at exactly the same time, or are separated by a few seconds. This simply doesn't matter at all. Choice (D) is incorrect.
If other airlines have had this anti-collision device installed, then if anything, that would seem to be a vote of confidence for it, an indication that other companies trust the device and believe that it's effective. This is definitely not a weakener, and could be construed as a mild strengthener. Choice (E) is incorrect.