1. Hollow point bullets aren't banned. The US Army just adopted them recently - M1153.
2. Hollow point bullets are very effective compared to ball ammo. There is plenty of research that's been done on this (see Martin Fackler). However, pistols are much less effective than rifles.
> Apparently killing a solider outright is not as destructive as driving him long term onto the medical system. This is also one of the reasons caliber has generally been dropped over time. The 1950s move to the 223 round is pretty explicit on this.
1. This is a pervasive myth. There is absolutely no evidence of this from primary sources. The goal of shooting people is and has always been to kill them.
2. The reason calibers have dropped over time has nothing to do with making them less lethal. It's because they're lighter and smaller (easier to carry more of them), and they shoot flatter and faster (easier to hit targets).