> There's likely a similar argument to made for the military, but involving morale and willingness to take personal risks in emergencies or times of war. Esprit de Corps and all that.

Yup. But it's not a conscious calculation; more like a primal urge (or so I'm told, by people like my dad, who had first-hand experience fighting in the Korean War).

Oh, I'm sure it is, probably pretty far up the command structure, and even all the way to the top, depending on the people involved, let alone for those close to the action. But even the bean-counters may not question it or try to curb the practice, no matter how cold-hearted they may be, because it may in fact be a good use of money.