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It is not at all an arbitrary metric - it is the standard they are responsible for imposing on others as a requirement for maintaining their position in the service.
Maybe things are different in the National Guard, but in Active Duty forces, we expected commanders and officers - especially senior ones - to be Leaders.
Are PT standards more relevant to an infantry soldier performing his job, or dental tech performing theirs?
Yes, it's arbitrary within the context of differing roles.
You and I both know that active duty is not different than NG in the context of the slack provided to senior leaders.