The only problem is that free enterprise creats an affluent middle class, and affluence is a path to political power. By the time the military is powerfull enough, so may be the middle class which will take a dim view of trading their x-boxes for military conquest.
Why kill people for stuff when you can just buy it?
I agree with you and have made that point myself at times, maybe even on this thread. We need to keep exposing others to that fact.