I'm definitely not familiar with how the Navy treats their lieutenants but it would be a shame to see these young officers forced out of ops and into management positions too quickly. I hope their progression matches the few pilots I've known where they're doing "the job" until O-5. The AF has been pushing back against the "Up or Out" policy recently and I hope to see it continue.
I won't apologize for the upcoming long post.
"Up or out" is the traditional model that has worked for the last 100 years or so in the US. Combat arms is a different story, but comparing pilots to other specialties is apples and broccoli. Their job demands they remain on flight status, others do not require that day-to-day, career-long, "hands on" experience.
Even some enlisted jobs do this. I've contracted with AF Comm since '04 and can speak to two career fields: IT folks and RF Trans. Both have bright, young airmen who joined to do technical stuff. The schoolhouse is a joke, but they believe it will be different at their first duty station. Unless you draw a unique assignment, something that isn't base comm, you won't truly do your job. The AF has consolidated the cool IT functiona at regional or command level NOSCs, but a young airmen will work the night shift answering phones; they don't do anything until they're about to pin on Staff. The IT-releated airmen grow disillusioned and punch for the civilian sector.
RF Trans...unless they pick up Combat Comm, an ACS, units like that, they are stuck in base comm working on LMR's and Giant Voice. Yawn.
In both career fields, Tech is about the last time you do any real tech work. By Master they are away from the workbench and in admin mode, doing tech stuff when they can. They start directing traffic instead of driving.
The military is structured to move guys and gals away ffrom hands on. It can only change its culture so much, or not at all, and still function.