Slow down, that's exactly what I said.
I work for (a) government, and of course I didn't choose to because it paid more than anything else. And I didn't decide not to join the Navy because it paid too little.
What I'm claiming as a general principle is that some people have a huge advantage in opportunity cost for a certain job, and organizations can be seriously affected by concentrating those people together. And we see this all over the place.
Consider the Abu Ghraib scandal. It's not that joining the military entails that sort of thing, or that it's rightly part of the job, but if someone has an affinity for abusing prisoners, then most jobs do not offer the same opportunity. Theoretically, decent people who value doing good should be attracted to jobs that are important and underpaid, but in practice, bad people who value side benefits to an extreme degree may dominate the market of people who will take the job.
This is putting a civilian-centric filter on the problem. Many, many people chose the military for reasons other than pay. If it were strictly for pay, almost nobody would choose the “harder” military occupations like Marines, or Army infantry, or Navy SEALs etc. Yet those often get more applicants than they have slots.
As for your statistical claim, we’re not really wired to think well about stats so we get erroneous intuitions. To be in the 95th percentile, you’re away from the norm but not as much as you may think, which is the GP’s point. A quick Google search shows 95th percentile for height is 6’2”…it’s tall but not so tall as to actually catch my attention. 95th percentile in IQ is 125, in pay is $248k, in male weight is 246 lbs. Non-normative, sure, but none so far away as to leave someone awestruck