First, saying we do something terribly, but better than the other guy does not win you many points.
Second, we don't know if we cut the bottom, top, or middle. We don't know how to measure this! Having the skills to write a strong "C" on your OPR is a poor indicator of talent and skill in both your primary AFSC and leadership abilities. On the E side, everybody is a winner as well. It's amazing that all our children are above average! Until we figure out how to measure our talent pool, we won't have more than a hazy idea of who we want to keep and who should go.
Third, what do you consider "extreme stress on the system?" Is that too few people to fill nominal billets, too few people to operate normally, or too few to win the war? From the ground level, I sometimes wonder.
Fourth, throwing money at people won't retain your best talent. Some may be great, but bonuses tend to attract those who either already want/plan to stay or those who don't see better options. Heck, I barely read anything on personnel/talent management and I realize this! More money is nice and all, but pay is not the top reason most people decide to stay or leave.
Finally, I have GREAT pride in parts of the Air Force. Those parts would be the airmen doing their jobs with care and precision, getting the mission done regardless of the enemy or other obstacles. The personnel system looks more detached, disconnected, and arbitrary just about every time I read about it. Why should I take pride in a system that is so inefficient and reactionary?
If that sounded like a bit of a rant, you are right. I know I see things at the micro level, but I'm not an idiot, nor are the people I work with. Your cheery picture does not fit the reality that they and I are experiencing.