I think it's reasonable to differentiate between the military operations satellites in space and the military blowing up satellites in space. IMO the former is a good thing and the latter is a bad thing.
IMO yes, although I can totally understand why some might disagree with that opinion.
If GPS went away, the US military wouldn't stop blowing stuff up. They'd just be less accurate with more collateral damage (especially when you take into account the lives that GPS saves by preventing KAL-007 type incidents, more efficient farming, better knowledge of seismology, etc etc)