The leg band is probably perfectly fine; it’s likely the angle the photo was taken. According to Ernesto Enkerlin, “We need to learn to live with leg bands and reduce or eliminate the risks involved because the benefits are many. It is becoming increasingly important to keep records to be able to aid in conservation efforts and more importantly to reduce the commerce in "hot" or "laundered" birds. I think all captive bred birds should be close banded and kept that way.“
While that's interesting reasoning for keeping leg bands, I think there's so much work to be done to get to that point. For example leg bands aren't even standardized and vary from breeder to breeder. The leg band on my U2 Echo wasn't all that informative. I was able to figure out what breeding facility (thanks to this forum) he came from and that in was in Canada but that's it. I'd love to know his true age for example. I heard through second hand knowledge that the place he was from was basically a parrot mill. And I gather it kept sloppy records.
That said I certainly not against keeping records and keeping tract of statistics. There's so many unknowns in the captive parrot world it drives me crazy. I'm not sure what the solution to that problem is. Personally I don't see leg bands as being it.
Echo occasionally get super hyper and attacks toys and runs across the bars of his cage. I could see how a misstep could cause and injure to one of his legs. Personally I think cages and legs bands are a bad mix because of that and unless there's a really compelling reason to keep it on I highly recommend removing it. Still I think its personal choice for the owner.
You can have birds microchipped now days.
I have heard that and know and respect owners who have done that and have no problems with it. But personally I'm still not completely sold on microchips for birds. I do have bais against them in the sense my late M2 Zane was a self mutilator. I also not totally sold the idea of the chip being put in muscle either. Honestly I'd have to learn about the science behind thou, but it just strikes me as uncomfortable. My dog is microchipped thou, as I have to problem with idea of it being in his fatty tissue.