Well, GMA did a segment on this and explained that elective surgery is allowed for the military and their family because the doctors are not always in the middle of a war. They need to keep up their reconstructive skills and be able to compete with the secular doctors. Military plastic/reconstructive surgeons would not want to continue to stay enlisted in the Army, if when they left, their skills were not honed and not up to speed on the latest methods.
If I were in the military and got breast cancer, I would want the doctor to know exactly how to reconstruct my breast and how best to do the operation. Afterall, it was not long ago they used to give women huge scars when they had a C-section, now its a small scar under the bikini line.
Besides, our military personnel are not among the highest paid people in our country yet they are asked to sacrifice so much in lives and where they live. I guess a free nose job or boob job is okay with me.