This was a standard MoD get rich quick scheme that was such a monumental cock up it was untrue. I know of one case where a serving chap has been moved out of his quarter and into ERA so Annington could have his house. Appalling.
The public don't care because this is just another example of successive governments' love of getting things on the Never Never; making them look good today and sod what happens tomorrow. They'll be buying stuff at Dixons next at the knock down rate of 29.8% APR.......
As for servicemen getting cheap housing, I agree there needs to be some parity with the civvy world. If we were to lose the housing entitlement, would it be possible to see a similar concession by the civvies? How about civvy employers choose 30 staff each year, at random, take them out the back and shoot them? That would bring some parity with the military.....