You forget av8r76 that the military is putting these 200 hour pilots into positions after having between 2 and 4 years of training them on discipline, leadership, decision making, et cetera; and thats after most "wannabes" are removed through aircrew selection - both before and after they join. The military's end goal is the same as industry.
The exploitation of the wannabes is the part I don't agree with - if you read the post you see I don't like the fact we pay them horrible wages and work them to the bone. I'd hike their pay and I'd give them what the non-pilot working their position makes if I were calling the shots; however, I cannot think of a more cost effective way of determining their suitability for the cockpit than the current system, albeit with increased wages.
If a small operator could afford simulators to do sim evals then I'd agree that we should scrap the waiting system tomorrow. But even the mid range operators cannot spend that kind of cash if all its going to be used for is hiring. They have to find another way to gauge a guys competency, and for newer pilots this is the way industry has gone.