Fatter and Dumber

Buried in the 12th paragraph of this sleepy article was a shocker:

"Colonel Baggio said that [Army] recruiting had been hurt by the fact that 7 in 10 potential recruits in their late teens and early 20s do not meet Army standards, largely because they are too heavy or failed to graduate from high school."

Did I read that right? Seventy percent of the candidates that the Army specifically targets are either too fat or too dumb to qualify for the service. I'm having a hard time getting my head around this statistic. Does it qualify as a crisis when a super-majority of non-college bound 18-24 year olds are that hopeless?