Dude (WAFP),
I too am military. 19 years now between active and reserve. There is a huge hole in your thesis here. In every squadron in the military, you upgrade based on time, experience, and readiness (in theory). There is zero limt on the ratio of Aircraft Commanders(Captains) to Copilots(First Officers). A Squadron can have all AC's if it wants/can. Not so in the airlines! Ain't gonna happen. Forgive me if this has been stated before as I am a month behind on this thread. In the military, an AC is dual qual'd in both seats. In the reserves/guard, often a crew will have 2 if not 3 AC's on an augmented crew. The military,while more merit based than the seniority system, it is not nearly as much so as you make it out. This coming from an AC/IP/EP in 2 different MWS's. Airlines will not make guys Captains just because they are ready! It is based on need. A cost issue! You don't want a merit system! It would be hard to judge/enact. How do you grade the ILS?
I have never been a Captain at an airline. Been at 3 now, but yet I understand the system. I have always felt a vital part of the crew and unafraid to give my input. My job is to keep the Captain out of trouble! I learn from them and perhaps they at times learn from me. I will give my inputs asked for or not-- he/she will decide. This is just like the military. And in the military, sometimes both are qualified in command but one is designated to make the decisions!

Regards,
ConnerP out