We won’t have a military if this is adopted. At least not one that can fight.
No, it'll grind on for a while. Mostly it'll be lesbians that come in, but there have been more than a few homosexual men, too. And then the sexual harassment will start, possibly even assault. The former will be ignored at the behest of higher, the former will be hushed up with little mention made and therefore no awareness of the problem put out to the rest of the Army, at least not in the homosexual sense. The Army will, of course, still rail against sexual assault, but it'll always be of the male-on-female variety that is portrayed.
Eventually, even the lifers will see what is happening and either get out or hold on for an earlier-than-planned retirement. The wars will end soon, and that means a return to a Clinton-era military made up of career opportunist "leaders" who are more akin to your Pelosis and Reids than your Pattons and Murphies.
That means P.C. will run even more amok than it is now (Exhibit A: GEN Casey, Exhibit B: GEN McChrystal), and the Army, at least, will be a very hostile environment for truly good leaders. Sure, some will squeak through, they always do, but too many will not, and their light will be choked out by P.C., political posturing, and an ever-expanding bureaucracy meant to destroy good ideas before they can get off the ground.