I'm not contesting that a 'broken' electrode is not an electrode. What is being contested is the manner/legality in which it becomes broke.
Why would it ever be "illegal" to remove a GE as long as the resulting installation still met code? Are you suggesting that an existing ground rod that rusted through could not be replaced? That is absurd.
Incidentally, the code (250.52) refers to underground water pipes as a GE. If the water company abandons an underground pipe to replace it with plastic, I don't see how it is an underground water pipe anymore. it is just an underground pipe. Just any underground pipe is not a qualifying GE.
There is close to a zero chance that the abandoned (former) water pipe qualifies as a pipe type electrode. See the requirements for such electrodes in 250.53(G).