After the final build up during the Reagan years and the end of the cold war, the cuts had to come. The cuts were important and necessary. Did the cuts go too far? It's possible, but the cuts have forced the defense department to streamline and better utilize the assets available.
In the late eighties and early nineties, the DoD practically hemorraged money. We've all heard the stories of $600 hammers and $1000 toilet seats. It's not that way today, even with the increases to the defense budget.