Some interesting perceptions here. Although I haven't done any military flying for three years or so, my recollection is that we used QNH for all instrument procedures, and QFE in the circuit or when it was necessary to deconflict with circuit traffic (leaving aside the MAOT on a mountain). QFE's just another usefult tool to heve in your golf bag - and I second the point about using it when you're learning to fly.
What I'm really a bit concerned about though, is that there seem to be a few people on here who don't know the difference between QNH and RPS....