To quote Apollo 13 astronaut James Lovell: "Houston, we've got a problem. . ."
Outstanding article.
Unfortunately, the problem did not end with X42. The current SecDef has invested a lot of political capital in the current force levels and "re-visioning". His recalcitrance in adjustments are leading down the path to employment policies which are digging the hole ever deeper and putting at risk the ability to respond both in depth and breadth.
You are correct ... retention is the first strokes of the handwriting on the wall - and Rumsfeld is gagging Daniel.
The money for the extra divisions is being diverted into Star Wars and other boondoggles. Soldiers don't kick back part of their pay as campaign contributions - the MIC does.