Eh, it's way past my bedtime, and I really need to sleep, but what the hell, I'll give it a shot as the Devil's advocate.
The issue:
The first development you have already touched upon:In todays world - well from the beginning of this millennium - military action and police action has become intermingled, and the difference between capturing a heavily armed criminal and fighting a war against a country is on its way to being eradicated.
Bounty hunters, secret agents, weapons depots, kidnappers, police, battlefields, terrorists, drug lords, corporate warriors, huge state armies, smugglers, extremists of all kinds, rebels and hit men seem to all have been mixed together into the same madness.
As such, it seems more and more evident that police will need military abilities and the military will need police abilities, and we will be losing the notion of having the police maintain security inside the state, and the military maintain security outside the state.