You know, just as an aside, recently the modern Army ground-fighting stuff did not fare too well against the old USMC LINE training. My fiancée's reserve unit ended up having me come to a pre-deployment "self-defense" refresher class to evaluate it, be a practice dummy, and add pointers even though I told them that I was never an instructor, just a regular 0311 whose unit put a lot of emphasis on practicing HtH.
Their unit instructor had been through whatever Army school is necessary to teach their stuff, and he was serving as a police officer before he was called up. The guy outweighed me by about 50 pounds of muscle and moved pretty well, but the problem was their system has a mindset of "defense" instead of going on the offensive. He would just get into his stance and wait for me to make a move (of course, this could be ingrained from his police training, the whole "level of proper force response" thing). In the one instance he managed to start out with me on the ground so we could demonstrate their ground fighting techniques, he managed to get me to tap out, he wrapped me up and had me locked out fairly quickly, but when we would start from standing and he would just have me advance any attack, he did not do well at all. During one instance, he moved into a strike and we had to take about a 5-minute break so he could relearn how to breathe after I hit him in the throat a little harder than I had intended to. Most of the Soldiers were very surprised that all of the basic stuff I used had been taught to me in boot camp and later SOI, and I didn't demonstrate any of the sentry removal techniques or other things we had been taught by the III MEF SOTG guys during our "Scout Swimmer" course (if memory serves, line 7 and higher). The main problem appeared to be mindset; their system taught a self-defense mindset rather than an aggressive combative style.
In addition, my fiancée had been in an MP unit prior to her deployment with a medium transportation company (all the females in her old unit were transferred before the deployment for a variety of stated reasons, but I still think the main one was because of the nature of the old units planned mission profile). During some cross training they had done with the USMC MPs, one of their more aggressive guys managed to piss of a female Marine by taking advantage of the close contact necessary when teaching restraint techniques to grope her. After disengaging and informing him that she was going to punish him for the grope, she then broke his arm and dislocated his shoulder. Duly warned and given a chance to prepare, his ground fighting techniques did not help him one bit against her current USMC MA skills.
IMHO hand-to-hand training is necessary because modern American culture does not place any emphasis on being able to handle yourself in a physical confrontation. Hell, most of the kids at college (I'm using my GIBill to get a degree so I can apply for OCS) think that my friends and I were insane while growing up because we used to go into a buddies basement, turn out the lights, and brawl with each other for fun. I tried to explain that we didn't go full speed and the worst injuries that ever occurred were a couple of broken noses, some bruised egos, split lips, black eyes, and two minor concussions, but they still thought we were nuts for doing so. The pool of people that the military has to draw upon (for the most part, usually those from either a rural or an inner city environment appear to have some personal experience with physical confrontation) has very little natural aggression as the media has advanced the idea that any violence, even in a controlled environment is a negative thing.