I think too that in order for the retroactive/grandfather argument to hold any weight the bx armor would only qualify as an egc if it was
approved for such by the NEC/ul
during the time period in which the dwelling was wired. A 1956 house then yeah, sure but a 1929 house, I don't think so, unless of course there is an old code passage that states otherwise.
Anyway, even if it would have been allowed thru grandfathering, still not a good idea. You don't want a toaster coil in the wall or someone hit by a ground fault- the amount of res present on many old bx runs it may take minutes or longer for a standard ocpd to trip. Like I said earlier in the thread, imo, there was obviously lot of ignorance years ago about impedance and thus the poorly bonded sheath as egc was allowed because of ignorance.
Today we know better- a high resistance path for fault current back to source is considered dangerous and almost unthinkable and we have acceptable alternatives (like gfci) to effectively eliminate the hazard- I say on this issue to leave the '50's style thinking in the '50's.
GFCI, 2 wire recs, or rewire.