Earlier quoted context omitted.
Sounds more like the server was misusing the 404 status and/or the clients were mishandling it. I am inclined to agree that for this particular usage, an "in-body" response makes sense. 404 should be reserved for when the actual HTTP endpoint is unavailable. But in REST semantics, you would only return 404 for an endpoint like /users/12345 when user 12345 doesn't exist. So the two usages line up. Returning 200 with a…
The problem is most REST services, because they are fundamentally HTTP services, are subject to how the underlying HTTP application server/proxy/middleware handles HTTP requests. Which are valid to return 404 in many more cases than where REST would allow you to return 404. In Targets case, it should have probably returned 400 Bad Client, since what the client tried to access wasn’t a REST endpoint. The real problem…
Also worrying about cache expiry is often a red herring. It's not fixing a problem, unless the problem is that the Product Owner keeps noticing that our code doesn't actually work as advertised. If you can generate a useful etag for a response, you can add client or middlebox caching any time it becomes useful, or take it away when it doesn't. But if you can't generate a useful etag, then any bespoke caching mechanism you build is unsound, because correct etag and correct cache invalidation are isomorphic.
I'd rather know we're on the road to unsound sooner rather than after customers rely on a bunch of misfeatures.