The initial idea for the Haredim not serving in the IDF while studying in yeshivas was to rebuild Jewish religious Halakhic expertise (and life) after the losses of the Holocaust. By now, non-intellevtual kids who are not suited to life of scholarship spend their years in Yeshiva in order to avoid the draft. They don't learn any trade or modern profession, and are destined to life of poverty and welfare. Enough with this horror, especially when avoiding the draft by so many puts an additional burder on the rest of the soldiers. A reasonable system would be to agree with the leading Rabbis on how many talented minds per year would study in yeshiva and get deferrals. Let us say 1000 per year. The rabbis should select those individials by competition or otherwise. The rest should serve, either in their own special units (like the Hesder arrangement), or by some national service.
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Gaza education ministry shuts 2 Shejaiyeh schools citing fear of Israeli artillery fire (Haaretz)
from the article: Draft deferrals for yeshiva students surpass 50,000 mark in 2006