While there are some downsides, I actually think this is a net positive. War-time, or at least the preparations for potential war-time (as all military endeavours actually are), usually lead to the greatest scientific and technical advancements. Just looks at WW1, WW2, the Cold War. I think we are now entering a "space cold war". Hopefully it can stay a "cold" war. But it is exciting to see what developments may come along.
The other upside, is that if the US achieves space superiority (which it already has, but if it develops the means to properly enforce it - which it is trying to do with this space force), it will open up the potential for proper commericialization. The US will be able to enforce space trade law, customs law, private property in space will be made possible. This will enable companies like SpaceX to have a proper legal framework within which to operate.