I know Jack Thompson is evil incarnate and all that jazz, but he isn't necessarily wrong about this one. It's no coincidence that the military is training soldiers using virtual reality or that controlling UAV's is pretty much like flying an aircraft in a video game. The military may not be paying people to create games that glorify war, but they're certainly making it as easy as possible for our generation to make the transition from civilian to killing machine. How do you do that? Make it as close to our hobby as possible. If a 90-Star General came to my house and said, "We're being invaded! Quickly! Use this joystick to control the UAV and bomb them", I'd probably be able to do it. Or if I, for whatever reason, had to control one of those r/c cars brimming with weaponry, I'd probably be able to that do that, too, thanks to video games.
I think he's on the right track, but he needs to get off of his crazy-cycle and avoid saying the DoD has managed to take control of the entire video game industry.