Akuperma:
1. He said he didn’t propose that, and R’ Feldman has apologized.
2. They are in fact doing exactly that. According to R’ Alderstein’s summary of the legislation, “immediately, anyone over the age of 22 is free to enter the workforce, even if he did not do any army service.”
3. They are trying very hard to make army service and alternative national service accomodating to charedim. It’s not perfect yet, but they’re definitely working on it. I sometimes read the blog of one charedi man (Akiva of mpaths) two of whose children have joined the IDF; one had a great experience and the other one has had not had very good religious accomodation. Like I said, it’s not perfect.
He’s still part of the Torah world. He’s just part of the moderates now — the new charedim, as they are called. He is sincere in wanting to make changes that will bring society together and improve the public’s image of charedim. Many charedim agree with him behind the scenes but are afraid to speak out out of fear of being denounced by hardliners.
R’ YG Bechhofer (who teaches at Ohr Sameach and elsewhere) has an interesting perspective on all of this, though I forget whether it’s on his blog or somewhere else.