Yes, America should stop sending military aid to Egypt, because current laws do not allow for it. Under American law, we must stop sending aid to any country that is in the middle of a civil war. Because that is happening to Egypt, we cannot send them aid until they sort out their government.
The revolution and ongoing strife in Egypt is a matter for the Egyptian people to sort out on their own. While Egypt has been an important ally, we cannot and should not ever influence the outcome of their struggle for self determination there. It only leads to resentment, which, at least in that part of the world, eventually comes back to us in the form of terrorism.