Not true, unless you are looking only at the Army, who believes in 1x optics and 14.5" barrels. The Marine Corps issues 4X ACOGs and 20" barrels almost exclusively, with some allowance of 14.5" barrels being made for vehicle crews, weapons crews, and those whose job generally isn't front line combat. But even those 14.5" M4s wear ACOGs.
I'm fine with going after variable power scopes, but just because the Army has decided to arm itself for close quarters combat doesn't mean 3G should follow suit.
Yes, the 1x dot obscures much of the target at long distances. Yes, it is only marginally more effective than iron sights (and even that is debatable). Fact of the matter is 1x optics are generally a poor choice beyond 200 meters, compared to traditional iron sights or a magnified optic. I guess what I am missing is why we should change the rules instead of changing our equipment to suit a certain set of problems, in this case, long shots at obscure targets.