The ultra-orthodox have wanted this for a long time and it's one of the reasons Israel's government was trying to curtail the power of the judiciary. You may remember there were protests in Israel over last summer over this.
This isn't about Pacifism, but more about autonomy and seclusion. I don't think they mind exposing their youth to bombs and bullets as much as exposure to cosmopolitan ideals they get from mixing with Israel's more secular youth. It's similar to the impetus for religious parents to do home-schooling in the US.