I'm totally chill, I just find the processes of how new uses for words are created, and this is a rather surreal one. As to why they wear that camo thing, I don't know, though I doubt it's out of a shared hive-minded military fetish, and it's still better than nothing in urban guerrilla/combat contexts.
See above for the first question. As to the other point, I could ask you in return if you really think that them being in a military uniform instead of a police one would make that much of a difference. I think that's even more futile to discuss how they're dressed than the terminology. Or perhaps not - anti-riot police uniforms are scarier than military ones. They're designed to be scary in order to disperse the crowds. I've been charged once (by accident I might add, I exited from the wrong subway exit and found myself getting charged), the whole "black wall of doom marching towards you" and banging on their shields is really scary. So yeah, the more I think seriously of it, the more I'm convinced that riot control uniforms are more intimidating than guys in camo w/o shields to bang on.