The military provides COLA (Cost Of Living Allowance) to its members to make it bearable to live in more expensive areas. It's a different situation because they send you where they want you. It would be a hardship to send people to an expensive area they coudln't really afford and have no real say in being there.

But it makes me feel ambivalent about your critique here. It makes me feel like it is maybe more complicated than what is contained in your reasoning, which means the "right"/best answer isn't necessarily obvious.