It was appropriate.
He certainly has done more to effect world change than anyone else this year....also, the Time selection isn't necessarily all glowing praise....rather, they maintain a criterion of "newsworthiness" in their selection. (ie, some rather nefarious characters have been named in the past).
Regarding the fallen soldiers - I agree, but never are the faces seen of these brave men.
Do something for a serviceman's family this year. Forget the cover of Time.