I was in the AF during the "Clinton years", and there was no wholesale "early out", or any other reason for 250 hr mil pilots to be out looking for civ flying jobs. Any body who was, either lost his medical or was kicked out.
You are forgetting the rather large contingent who opted to leave. They saw the "hand writing on the wall" so to speak and realized that the military career was not going to take them flying as often as they liked.
It used to be rare to see ex-military in a commuter job, as they were usually hired directly to a major such as Delta or Southwest.
But in '98 and '99 we started to see some trickling in. Of these there were a couple I flew with who were at the 250 hr level or close to that - say 250 to 400 hrs.
It's true they may have washed out and changed their story. I had no way of checking nor did I care. I met a lot of pilots with "skeletons." On the other hand, I had no reason to disbelieve them and the stories didn't sound like "stories."
I do not to intend to belittle US military training. The training is fabulous for what it is intended to do, but I feel that the military mission and the airline pilot mission are not all that similar.
For example, everyone I flew with were "good sticks" but many lacked experience with how to handle routine problems that come up for a commuter pilot, such as crew difficulties, fatigue, maintenance items that vaguely fall in to an MEL, shifting weather patterns, negotiating with dispatch, negotiating with ATC, etc.
That kind of judgment can only come from being out there for a period of time. It is not the kind of thing that can be taught in a classroom, which is why I agree with Don (DE727UPS) that 250 hr pilots normally do not belong in a 121 cockpit, and I will add that the 250 hrs can be from anywhere, not just an ab initio program.