I'm not sure what I believe is right but one thing I can think of is there could be a bias for a certain type of people to join branches of the military and therefore our capabilities are held back by that bias. The same goes for companies that work with the military/defense which I think the parent article lays out as well.

If you allow everyone to pick and choose what they want to do, we may actually end up (or already have ended up) with all of the talented people and cutting edge businesses chasing money here and only second tier folks working with and for the government.

I think a great example of this is with NASA. They are doing a big hiring blitz (someone posted about it recently here). They have a ton of openings but I have to imagine that the talented folks that work in the field are chasing the money that is paid by private companies right now. I personally believe NASA is an important thing that needs to exist and we need to figure out a way to make it happen. Maybe we need to just pay folks more to make them incentivized to work in government? Maybe even more so if you working for the armed forces because you lose a lot of people based upon the sheer fact that your life is more at risk.

It would definitely be worth some research. I don't think free market concepts align well with working in the armed forces and there could be some arguments that we need to tip the scales to make it work better. For some things like the usual government services that aren't vital for our existence, I think we can all accept the longer wait at the DMV or the two decades to get a Real ID implemented. I don't think we can accept not defending our own country from an adversarial invasion so we need to make that importance reflected somewhere.