I agree, this is stupid. It's just politcal caterwauling from a knee jerk reactionary. I don't know Mr. Hagel, but I can't believe he's actually serious about this. The military is against it, the administration is against it and more importantly the people seem to be against it. I just can't believe he said this to be taken seriously.
That being said, I think some sort of mandatory service is a fantastic idea. I'm not advocating throwing everybody on the front lines for two years, but rather two years of some sort "civil service" each according to his/her means.
Good with computers? Work on an electronic national voting system. Good with numbers? Help the government balance their budget, lord knows they need the help.
Collectively we bitch about the apathy of the younger voter, we complain about the "uninterest" of the younger generation. I think some sort of mandatory civil service would go a long ways in fixing that.