My thoughts on the whole situation.
From the statement made it seems that it was not down the the original footage that they gathered being low quality, but down to a bad edit and when they went back to re edit... I am guessing they lost part of the footage or they overwrote/deleted it. i mean, they say themselves that they tried to use the rest of the footage that was left, but it was too low quality, so i am guessing it was a mistake on the editing side.
In terms of them not wanting to reshoot, I can understand that as well because at the end of the day, making a high quality music video is expensive and they have already paid for it once. It is not just a camera they need, there is also all the staff from hair and makeup, to that random person who gets drinks for people, as well as the costs for location and potential rental of equipment. How I see it is, there is too little time to do a re shoot and re edit and that it would be too costly.
I am going to support them no matter what though, lets make this a good comeback guys!