I remember going through 'Options for Change' in the UK forces back in the early 90's. The world did not collapse and the UK was not invaded! The world changes and with it the composition of the military will also change. It is not short sighted, it is not being ignorant to history it is simply doing the thing that is right for the time. Is this right for the time? Well, only history can tell you that and with 20/20 rear view vision everyone can tell you if you were right or wrong. However, given the information and conditions of the time you make the decisions that are relevant for the time and let history judge you.
On an historical note, the Romans were quite unique in having a standing army. For the most part, before and since, the professional armed forces have always been supplemented by draftees in times of increased threat / need. Once that threat is dealt with the military contracts in size back to a small core of professionals.