I mean, yes this tech like most others is dual use. But let's for the sake of argument assume that we know this tech will mostly be used for military purposes.
Yes, others might still develop this. But in the meantime "we" (whoever this is, reminder: HN users aren't just from the US) get to miss out on other things we could have invested millions/billions into. That infrastructure project? Gone. That research into new/better energy storage? Gone. That quirky project about preserving natural habitats in the third world? Gone. By the way, that one might have actually contributed something to a lasting peace in the region. But hey it doesn't matter because we'll win any armed conflict with our drones.
That might sound bitter and/or idealistic, but ultimately if we accept that the funding of whole branches of research depends on how much benefit it provides to the military, then ultimately we can say all day long how we value nature and human rights and all these things, but we're really just dressing up a really fancy warrior armor with some Greenpeace badges.