Barry, the army is a bad place for a Jewish child to be. I think even charliehall once posted that at one time a high percentage of hesder boys went OTD (although now it’s better).
So as long as army service is a requirement, anyone who won’t join the army for religious reasons is severely handicapped in making a living.
I don’t know the politics of abolishing the draft, although I did hear that MK Feiglin had been working on it. If that happens, you’ll see a much different charedi approach to working.