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The colonies were lost in no small part thanks to the intransigence of Parliament. They were not retaken because, as you say, cost benefit analysis said otherwise. Indeed, in 1812 our war aims were probably more realistic than that of Americans!

TL;DR, heroic and based second amendment militia got put up against Peninsular War Veterans and were promptly steamrolled. Edit: Apparently our lads were quite surprised by how quickly the American defence collapsed. After fighting the French in Spain it must have felt like a cakewalk in...

A touch naive and a tad insulting to what the Continental Army achieved. Unless you are Switzerland, with an excellently trained pool of reserves, a standing army is necessary for statehood.

Something similar happened with the Royal Navy in the 1960s. As I understand it the command structures got slammed together (undermining the Sea Lords and Admiralty Board) and thereafter the fleet got fucked over in favour of the airforce. And in classic Westminster fashion, they didn’t even...