Dick, this "military" argument is akin to the Mil Airspace requirements in this country. A piddling few aircraft taking heaps of airspace compared to Europe/USA/Japan etc etc...
On one hand Mr Howabout says the F18's transiting don't really need >FL290 because the tankering assets don't tow them around above that while on the other hand they want an exemption based on costs! Speaking out of both sides of the mouth I'd say.
What about cost to non-airline industry? David Bell is a very measured individual indeed with much experience by the way...