> All warfare is a waste of resources, but those who decide to become pacifists are eventually out competed and subsumed by those who maintain the art of war.

They are using 'pacifist' in a rather loose sense.

So: Switzerland ain't wasting resources on warfare (though spend a bit on keeping their defenses working), and they aren't 'out competed and subsumed by those who maintain the art of war' either.

Your remark about profiting from other people's wars is a different topic.