Because Lookout is an enterprise security systems company and so warns enterprise companies not to wipe as it means they cannot conduct forensic analyses of their enterprise infection, and may loose valuable company data - https://blog.lookout.com/blog/2016/09/02/pegasus-trident-cio-ciso-what-to-do/
For an individual who understands they are inherently going to loose all their data, then a restore as new device in iTunes will erase all content and re-install the latest iOS. Then, as long as they avoid backups, the infection will be gone.
As i said, a restore as new device in iTunes is the iOS equivalent of a re-format and re-install from trusted media on a Windows or OS X computer.
Other media security sites and Apple tech news sites have already reported that's the best you can do if you think you are actually infected. Lookout will sell you their software and work with you if you wish to trace any infection beyond a single device (or you can use their App to check your device for infection after updating to iOS 9.3.5).
P.S. The Lookout Pegasus detection app is free to use for that single purpose. Note that it may give some false positives on some devices, as the app was not purpose built just to detect Pegasus.