Many people served in far more dangerous situations in WW2 and the Korean War. No one gave a fuck, as they were just ordinary Joes. Maybe they got some medals, but that was it. They didn't receive a lifetime of extraordinary privilege as a reward, they had to go back to their ordinary jobs and live off a pittance.
And, as we speak, more recent ex-service persons are sleeping on park benches or in rough hostels, because the state doesn't give a shit about them either. Not even if they are wounded in mind or body. Thatcher even kept the Falkland wounded out of the victory parade. Yes, really!
I really wouldn't play on the military service aspect of the royals as some extraordinary reason why they should be privileged. It doesn't stack up.