In fact compulsory service would argue against your point because an informed body of citizens would not allow the government to trump up charges for military actions. It would require irrefutable proof and allow an open and informed discussion of the people BEFORE any action, because the people would be talking to their representatives and the representatives would be hard pressed to listen and obey.
Is it possible to make it fair and not have ANY loopholes? Probably not, but I don't think we should dismiss it out of hand because there may be a possibility of some people not pulling their weight. I mean how is that any different than our current system?
Yes men and women should be required to serve (AND AGAIN NOT JUST THE MILITARY).
If people are more informed and active and voters turned out in a bloc instead of fits and spurts, liars would not last. And I am one of the most cynical people you can find, but I don't like to turn things down just because there MAY be a flaw. Otherwise things WILL NEVER change, because we are always set in a mindset of it can only get worse.