Also, non-segmented slip rings can arc too, the brushes should be in contact whith the slip ring surface, and normally that is where the current flows, through the brush contact area. At high altitudes, where the air is not a very good insulator, the electrons can jump from the slip ring to the brush at places other than the contact area (at the edges of the brush for instance)
The arcing tends to pit the surface of the commutator or slip ring, which increases brush wear.
Btw, that should have been "conductive carbon dust" in my previous post.