Excluding peacetime veterans from the benefits will inevitably be arbitrary and unfair, cause waste in the form of more complex rules to generate and administer, and probably cause lawsuits and legal costs to defend.
We always have undeclared wars going, plus dangerous conflicts short of war. ( the Cold War confrontations and shootdowns, secret military assistance, submarine and air intelligence ops, etc.)
There are many dangerous military duties which are still dangerous in peacetime. On the other hand during wartime, some safe jobs are as safe as peacetime.
Not every sacrifice is physical or due to enemy action.
For those reasons I would support eliminating the distinction.