I think your interpetation is the right one.
D17.1 was not intended to make each welder to requalify as one specification superceded the other.
The "extended validity" is intended (in my opinion) as a mechinisim to reasonably reduce the huge number of qualification tests for some 1595 certified operators. Think about 6 or 7 material groups and two thickness ranges at least. Thats alot of coupons. When I served in the Navy in the mid 1980s we enlisted aerospace welders had to recertify annually while our civillian counterparts needed the 5 year requal. Sometimes it felt like we spent more time testing than fixing jets.
Again, not speaking for the committee here. Just my personal read.
You should look at the purchase order issued by you customer to see what requirements are being specified, i.e., MIL-STD-1595A or AWS D17.1.
Your customer's purchase order, standard clauses, etc., may require you comply with MIL-STD-1595A, in which case you have to meet those requirements or get an exception to the contract requirements.
AWS D17.1 becomes a contractural requirement when it is referrenced by the contract documents.
Another area that causes confusion are material specifications. There are a number of military and federal material specifications that have been cancelled. Many have been superceded by ASTM material specifications. However, if your customer lists their material requirments as per the cancelled military and federal material specifications, that what must be met. You can not simply substitute materials meeting the ASTM specifications for those that are specified as meeting the cancelled military and federal material specifications. It can be a challenge to find raw materials meeting the cancelled specifications. You will have to get permission to use the ASTM materials from your customer and justify the request to make the substitution.
Good luck - Al