I've heard from people in the space sector that it was the <i>exception</i>, not the overflow per se that caused the problem.
Had it not been caught the flight could have made it to orbit (if there weren't other problems). Wikipedia says it was a hardware exception but <a href="http://www.ima.umn.edu/~arnold/disasters/ariane5rep.html" rel="nofollow">http://www.ima.umn.edu/~arnold/disasters/ariane5rep.html</a> says it was a <i>software</i> one, and it was only in code that was needed in pre-flight so it seems likely to not cause problems if there wasn't that crippling exception.<p>These systems have become so big and expensive. This was the case since ICBM:s and it got only worse with Apollo.<p>Yet they are so vulnerable since there is no way to abort intactly once you have flown something like 0.1 seconds. (At least Saturn V had some redundancy.) You do not get a second try.<p>Both issues create a perfect recipe for stagnation - everything has to be checked and rechecked for years before and after a software or hardware change. If someone tries something new, and there is a launch or spacecraft failure, it is a political issue and heads will roll. People's technical and political careers are destroyed.<p>In short, this way is not likely to reach real spacefaring.<p>A more organic approach with lots of smaller actors working in parallel and trying and failing a lot more - but with better processes built in to handle said failures (technical, political and cultural) could be much more conducive to real progress like increase in operational flexibility, shortened schedules, better reliability and lowered price.<p>Reasonable sized reusable rockets with good intact abort capability in a testing and development program could up the launch rate hugely, and all kinds of different solutions could be quickly tested. I find it likely that this will eventually happen, but it is frustrating how long it is taking.<p>In this "horizontal velocity overflow" case, you could do an intact abort if you had a fallback to some alternate control law or even manual control. Those are not incorporated to current expendable space launchers but they exist in aircraft. (Saturn V and also the Lunar Module <i>did</i> have manual backup. You could fly the Saturn to orbit. The LM was hard got get to the right orbit where the CM was waiting...)