The Kosovo problem probably arose because of the proximity of NATO nations. We don't have as many hundreds of thousands of African refugees in Europe, but as I write, one tenth of the population Of Greece, NATO member, is of displaced Balkan origin. Italy likewise has a problem whilst Germany has hundreds of thousands of former Yugoslavs. There are more Bosnian Muslims, refugees of a century of conflict, living in Turkey than there are in Bosnia! The problem is very much a 'NATO backyard' thing and I suspect that had we been in the very private meetings we would have heard many NATO members asking Clinton to help.
Problem is that the Balkans are like Ireland - impossible to keep sorted for very long.
On the earlier point about disbanding frontline squadrons - I may be wrong, but I think that a lot were scrapped because of SALT 2. Tornado is strike capable and therefore falls within the remit of arms limitation treaties.