That is totally aside from the fact that providing non-lethal weapons to the military is a bad idea. Too many people would then second guess the troops as to why they ever have to fire a lethal shot. Non-lethal weapons also put the troops in the position of being policemen. For their safety alone, you can't cross-train a person's reactions to operate cleanly in both lethal and non-lethal tactics.
Excellent point. Crowd & riot control are a police function, not a military one. Hence, we have Posse Commitatus and other restrictions.
Plus, that Toast-a-Mob machine is pretty expensive. Maybe the manufacturer could rent it out to police departments whenever the Occupy crowd needs to be dispersed.