The military force you describe, is pretty much what existed during my service time starting back in the 60's.I certainly agree with your assessment of "eating our seed corn" and streching the guard and reserve.
Since 9-11 I've wondered what it will have to take for our government and our citizens to realize that entitlements are an unsustainable luxury that weakens us, and that the time has come to put far more resources in to the larger force you speak of.
As I mentioned further up the thread, given what he has to work with, Rumsfeld has done well,IMO.
Well, yes, but at that level if you aren't getting the resources you need, you make it known to your boss, and if you can't get what you need (Support for increased resources, since Congress actually doles them out) from him, you fall on your sword, noisily.