I don't doubt that technology is important in a war. But like I
said earlier, technology forms only a component of it. Tactics are
important. If technology was that good, then why did the U.S. fail
in locating Mohamed Farah Aidid in Mogadishu in 1993? What abt
Osama and Saddam? Have they found them yet? Technology is important
in conventional settings, but go down to a low-intensity conflict,
its still the man-to-man firefight that determines the outcome. And
LICs are the mainstay of 21st century conflict. No guerilla is
gonna go head-on with a superior-technology armed soldier. They are
gonna try other avenues of zapping an OICW-equipped soldier.
Ambush, sniping, you name it... 
Regarding your second point, if the OICW isn't for ordinary grunts,
then who is it for? A small select group of soldiers? Would it make
an impact in a conflict? Regarding the costs, wouldn't it be better
that they configure current weapons to allow for each and every
individual grunt to carry rifle-launched grenades instead? That
would be more cost-effective than investing in an entirely new
weapon system. 
I agree that the military is a conservative organization. Sometimes
their conservative thinking overrules better technology. BUT, we
must also remember that they are the ones doing the fighting, not
the defence scientists and engineers. Take for example, Eugene
Stoner, the man who invented the AR-15/M-16, who came up against a
wall of conservative flak for the introduction of the 5.56
cartridge for use in his rifle. But there was a reason for it. The
M-14 was a clumsy weapon, but it at least fired a 7.62 round which
has a greater knock-down power than the 5.56 round. The problem
with the 5.56 round has been proven time and again in many
conflicts. Even as recent as the Afghanistan conflict, grunts
wished for a bigger calibre weapon firing a 7.62 round.
I'm not arguing against technology. I believe that it has provided
a fair amount of useful devices such as NVGs and stuff like that
which aids soldiers in fighting better. But while technology has
improved, the enemy has also grown smarter to it. So at the end of
the day, new tactics still have to be devised to counter that. By
pushing the technological envelope, you are forgetting that under
all that high-tech gizmos is an ordinary soldier that still has to
learn how to fight and survive, irregardless of technology.
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