A response to several points:
That dodgeball teaches agility. No, it measures agility. And those who lack it sit on a bench and develop nothing for long periods of time. A fun obstacle course in which kids improve their best times (and can even compete with others) would be a much better choice.
That kids won’t be ready for a draft. We have an all-volunteer military and I don’t see us ever going back.
That kids are going soft. Today’s kids are under more pressure than most adults can imagine, in part because adults are a cause. There are soaring mental health issues among kids. It isn’t because they are soft. Social media, academic pressure, school shootings, zero-tolerance policies, etc., create a very different childhood today and kids have to be tough to navigate it. The “kids are soft” stuff comes from “get off my lawn” types who really don’t know.
A common refrain is “kids need to learn “X” so we need dodgeball.” Give a good P.E. Teacher your list of X things and they’ll give you a better, safer, more constructive way to teach it that will keep kids engaged longer, off the bench, and will allow for esteem building. And yes, those activities can still be competitive and determine winners.