If anyone thinks the moral justification for selective service has diminished, they should launch a campaign to repeal it and see how it goes over. I suspect that the non-prosecution more reflects the public’s leniency in the absence of major threats since the fall of the soviet union than a change in the underlying normative view.

Conscientious objection still puts the ball in the government’s court. You have to make your case to the government that you have a deeply held religious or moral belief that precludes participation in war, and then the government decides what it wants to do. It’s not clear to me how a corporation would prove the existence of such a belief. But even if that was possible, it wouldn’t give the company the right to decide unilaterally.