Hang on a second, let's talk about being 'operational'.
In Korea and Vietnam we had a large-scale (for force size), tactical and strategic involvement. There was an enemy air threat, as well as ground threat. Our aircraft were in the thick of it, delivering on the two-way range. That has not been the case, for the most part, in Iraq ans Afghanistan. Only a small number of Chinooks have deployed and fought in-theatre. With one loss (not in action) and one fatality. I don't mean to take away from the Hornets and their very brief deployment to The Iraq war, nor the strategic transport and ISR guys and the good work they do, but they are not facing the same level of risk as in previous conflicts. That's why RAAF losses stand at zero.
Military flying is all about controlled risk. I understand that, in our increasingly litigious society, displays like this would not be permitted today. Prima facie the risks are too high. But high-risk activities are absolutely necessary in order to maintain aircrew skill and operational effectiveness. Obviously you don't want to put crews in dangerous situations for no training benefit, but the moment you let the health and safety Nazis take over, is the moment you cease to have an effective force.
You are correct ftrplt. Though it is a sad indictment that the current low operational tempo of our air assets has them stretched.
A good air display can do wonders for recruitment, and they look cool too