As noted above, the military produces too few pilots to fill the airline ranks. And, frankly, military pilots have a boatload of opportunities outside of aviation - many of which are far more lucrative than airline flying. So, it isn't like the airlines are grabbing all the pilots who leave the military every year.

I agree that a 4 year degree is not strictly necessary to be an airline pilot. Rightly or wrongly, it was a way to thin the herd of applicants when demand for pilot jobs exceeded the supply of open positions. As that changes, it is not surprising at all to see changes to standards that are not directly related to flying go away. That said, if I were a pilot, I'd be worried about my job becoming perceived as a "blue" v. "white" collar job.