I've long told every Officer I meet, "When you get to be Chief of Staff, nuke the Hoffman Building."

The only thing that keeps me optimistic is the kids -- the LTCs and below make it work in spite of the impediments in the system. The technology and the massive amounts of money help keep us from looking like bumbling idiots -- but the kids do their part and more as well and that in spite of the way they're trained (or not) and treated.

All you say is true, two things you say are particularly important, I think:
"...Revise the OER, open up assignments to a more competitive and dynamic pool of human capital outside of HRC's control; and to paraphrase Brando's Kurtz "our problems here would soon be over."
. . .
Had we a threat with deeper pocket books, better technology, and without the constraints of our personnel mgt system to systematically suffocate innovators and mavericks....things could be different."
True dat...

Keep the faith.