LT1641 datasheet page 7 says:
"Once the voltage at the output has reached its final value,as sensed by resistors R3 and R4, the PWRGD pin goes high"
Okay output voltage has reached a level, but then what is the link between current limiting and output voltage?
Example 1: Input is 24V, I set the timer to 500mS which the chip stays in current mode. Now the question is, how do I know if the chip is still in the current limiting mode if the output voltage has reached already the value set by resistors? This would easily lead to a situation when Powergood signal enables already the next stage, say a power regulator, when LT1641 still limits the current.
Example 2; I set the timer shorter than it is needed to fully load the capacitors on the output(next stage) so the last bit of voltage will just "jump" to the max, this would cause a surge current.
What the POWERGD signal should do to be useful, is to inform when the current mode has ended. FB pin should be used only to detect short circuit on output.
When you have no clue in which stage the current limiting is at the time, feels pointless to use PWRGD to anything.