I understand what you are saying but there is the reality of time constraints. Army basic training is 10 weeks and Marines is 13 weeks I think. The main difference is every Marine is trained to be a rifleman/infantry.
You need to train people in first aid, marksmanship, familiarization with other weapon systems, land navigation, radio procedures, small unit tactics.....ect. The time for H2H training is pretty minimal maybe a week in basic if you are lucky. The Marine program MMAP is very similar but I personally don't think it's as good as the premise of the army program. You have to understand that the military training system is designed to train people in a manner and speed that very stupid people can learn to be soldiers/marines/sailors/airmen so there is only so much time.
Now when soldiers get to units they have jobs to do, maintain equipment, do paperwork, clean crap and such. There is very little duty time that can be dedicated to H2H training. In fact it is supposed to be a supplement to the morning physical training which is done normally three times a week.
Finally two last points, one if our soldiers are stuck in hand to hand situations, shit has gone bad really quick. Remember this is going to be used after the options of airstrike/artillery, direct fire weapons like machine guns, personal rifle and grenades, and finally bayonet fixed rifle are either exhausted or not viable. That is a very rare situation.
The second point is despite everything the military really doesn't want a bunch of bad asses running around kicking the crap out of civilians when they go on leave and get drunk.
As far as the guy that taught combatives that sucked, well he was probably the dumb bastard that volunteered, and you know what they say about volunteering in the military. Skill had little or nothing to do with it.
i never been in the military; but i have quite a few friends and family who did, an as stated they don't focus on hand to hand cus if it gets to that point ALL HELL has broken out and your in big trouble.
i think the training is to dev a basic, rudimentary skillset and strategy to allow you to eff DEFEND yourself in and when it gets to that point; not to make you a top figher; its war they train you for, being able to hook off the jab and use a rolling kneebar aren't as high a priority as a limited amount of skills/techs the person can learn drill and adjust for their style or ability.
i would think the guys coming out of the military would be aware of this; but if in fact they are onyl training w/a group of ok to mediocre grapplers/strikers, then of course they think they are better than they are...they can only gauge their skill on the level of the guys they face on a day to day basis.
its like training at a grappling club and having no knowledge or exp, as u get better u feel u have legit skill and ability; but as u get out more, compete or train diff places u realize the lower class or caliber of ur instruction and partners.