The desensitization point cuts deep. But I'd add a structural layer: inflation-funded warfare removes the most direct check on war-making — the tax bill. When governments can print money to pay for bombs, the cost is distributed invisibly across everyone's savings rather than appearing as a line on anyone's tax return. Vietnam had a draft and visible tax increases. Iraq had neither — just debt. The more invisible the financing, the less public resistance.
Hard money doesn't make war impossible. But it forces the question into the open: are we willing to actually pay for this?