Having complete dominion over the .mil domain hasn't stopped the U.S. military from registering a bunch of stupid, unnecessary .com domains, like goarmy.com and navyjobs.com. That's really idiotic, as they're not in any way a commercial entity. It just goes to show that even the military has its share of dumbass marketroids.
Really, a US-specific domain like .mil ought to be a subdomain of .us, but since the Internet was created as the ARPAnet, a Department of Defense project, they wound up with their own top level domain anyway. If .mil were to be made into a true gTLD and open to international registrants, would they let the Iraqi army get one?