The segmented design probably wouldn't be that much of an issue as a centerline thrust CEV carrier. For one thing, there would probably be less stress on the Field Joint without all of those bending moments you get during the twang when you're launching a shuttle. Even if the O-Ring fails, it's a fairly robust design-on 51L that SRB kept chugging along all through the breakup even while it was leaking out the side. That sort of event would be survivable with a CEV on top/launch escape system. I'm thinking back and the last time I recall a big solid just flat out exploding was that Titan 34D that experienced a burn-through out at Vandenberg in 1986. With some system upgrades, like the new Helium driven APU, and a fiber-optic burn through sensor like Rutan's rocket has, a shuttle-derived SRB might make a pretty good vehicle. They could make the filament-wound ones onsite in Brevard County and provide some steady work for the area too. Alas, given the short time frame everyone is talking about, I'm not sure NASA will be able to build the simulator for it in the next 8 years using their current business practices, let alone the real thing.