Lt. Dan Choi, who was discharged from the military because he had come out as a gay man, received a Service to Humanity award from the Harvard Humanist Chaplaincy. 
My initial reaction: Any society that can’t rectify a situation involving this much gross injustice probably can’t get much of anything done. Hint to Congress: Simply write a law that says you won’t kick highly competent soldiers out of the military just because they are gay.
The military is a huge employer that performs the single most important function of the federal government–national security. It should have no problem finding a way to accept service from responsible, competent Americans of all walks and ways of life. The military accepts felons; it should accept homosexuals; it should better find ways to permit women to serve without sacrificing their child bearing years. The elderly should also be welcomed into appropriate roles–there should be a wide range of opportunities for those with life experience. Don't ask don't tell seems a bit out of step with the times. Isn't the worst possible thing the draft? Don't we want to get the job done by folks who welcome the call for service?
Sarah Connor writes:—"The military is a huge employer that performs the single most important function of the federal government–national security."
I disagree—it's important but not THE most important function of the government, nor was it ever seen as such prior to WWII. The single most important function of the government is to ensure that country is worth defending. As it states in the Preamble of the Constitution:
"…establish Justice, insure domestic tranquility, provide for the common defence, promote the general Welfare…"
Lots of nations have had strong, expensive militaries, but not much else, which is why they never achieved anything other than brute dictatorships.
The rest of your post I very much agree with.