don't let perfect be the enemy of good
It's not good! What about this is good? Manufacture something else! Fund schools! Feed people. Develop the potential of your society.
It's not even the "best bad option under empire." This is the worst possible option. You are only destroying other societies, not improving your own.
I think what this comes down to is nationalism and the appeal of strength. This guy just likes the idea of building up his nation's MIC.
I wonder how that building numbered the rooms