Yes. You are correct: it is difficult to use on CW. 

And the selectivity is much too wide, even for me. I prefer to use the 50 Hz filter between my ears. I kinda like to keep track of other nearby signals.

But the ARC-2 is a bit too broad even for me.

And IMHO it is really much too big for what it is.

But it IS a very interesting rig.

As I remember it, Dave suggested an easily removed mod to increase selectivity in it.

I own an almost NIB one here.

If I live long enough, I'll get it on the air yet.

Ken W7EKB

The ARC-2 is a very strange beast with its varying IF. It was clearly thought of as a voice radio first, maybe as replacement for Command Sets. It's kind of a hassle to use on CW - there's no "BFO offset".

-Hue Miller