I think a big concern for our military has been that weapons and training have been largely geared toward WWII and Viet Nam types of fighting where you know who the enemy is because you see them coming at you in their tank with their uniform on. For a long time we have just focused on making bigger tanks that can shoot further.
Problem is that training doesn't help that much in the door-to-door fighting we have now in Iraq and Afghanistan and will likely have elsewhere in that region for a long time. A gun like this has got to be a whole lot better for our guys fighting in close quarters than an M16 or a .45 pistol. The guy is right about the "fear factor".
Hell, I bet the cops in downtown LA would like this thing.