The Navy actually relaxed their standards because they were kicking out too many otherwise qualified sailors. These days if you can suck in your gut to 39" or less, you're good to go.
The problem with the Navy (at least on the aviation side of things) is they no longer make the time to do command PT. They're too busy meeting a flight schedule. They're basically telling their sailors to work a full day and find time on your own to stay in shape. The end result is a lot of fat sailors.
And then there's the high carb Navy chow...
Oh I know. I was an Aircrewman and the flight schedule would interrupt the second coming of Christ.
I do think the “command PT” thing was always a joke. Staying in shape is more a personal commitment than the command’s obligation.