Is there room in a "Peace Time" military for those who have known nothing but war?

It is not like there is a group of hardened veterans who are just sitting around, sharpening bayonets, behind a large glass wall that says "Break in case of war". Even after being deployed for two out of three years, you need to adapt to your environment. If you can't get out of the mindset of combat operations and not garrison operations, be prepared to be passed by your peers. Passing a board is what gets you to the next rank. If you want to stay in the "deployed " mindset of wearing a uniform that is dirty and looking like you covered a wrinkle bomb, then you will be left behind. The reason that people were being put out is that they wanted to bring back a deployed environment back stateside and there isn't a need for it. Learn to adapt to your environment and do what is needed to succeed.

There is always room for jell-o

Yes. I deployed eight months after I got out of AIT and to my first unit. I went TDY within 3 weeks after I got to my first unit. I deployed twice within my first 4 years in the Army with that unit. I'm still in.

Look at some of these people who are in 20, 30, 35 years. They managed to adapt.

There is a place for those who can adapt. If you can't adapt, you'll be gone.