@AC (I repeat,it is just a toy)
As Muscleguy pointed out, the Mongols were no slouches when it came to the technology of warfare (which is what we are talking about). The Chinese may have out done them in other forms of technology, but in war making tech they did not notably outclass the Mongols.
As to the Japanese, their planes may have been somewhat superior at the outset of WW 2, but there is a difference between a slight edge and massive superiority. The American fighters of the day (the P-40 and F4F), for example, had advantages in particular areas like like durability and speed in a dive that they could and did use to counter the advantages of the Zero quite handily when used correctly (as the kill ratio of the Flying Tigers illustrates).
That is part of the point, an edge in tech is nice to have, but the kind of technical advantage I am talking about is more of a night-and-day type thing. Consider, for example, what happened to Confederate units armed with muzzle loaders faced when they encountered one of the (relatively rare) Union detachments armed with repeating rifles during the American Civil War. The reason for that rarity, BTW, is the decision by some functionary in the War Department, with a mindset similar to yours, not to officially adopt repeating rifles because they would "encourage soldiers to waste ammunition".
As to your arguments that US soldiers are poorly trained, there is nothing to refute, you just made a flat assertion with nothing to back it up. Anecdotally, I would point out that the video clips that I have seen from Iraq and Afghanistan did not show any instances of panic fire, specifically, nor much in the way of apparent inadequate training, in general.
Your whole assumption seems to be that spending on new weapon tech is done to the exclusion of money for training. With a military budget of US$651.2 billion(!), I think there's room for spending on tech like the XM 25 without shortchanging training.