Oh, no shit, you're right that this kinda data thrills the shit out of MilIntel types, that and the Stanford Expirament, I mean, you wanna know how to A) break the enemy soldiers you capture and have them willingly cooperate with you and B) see how you can keep your own soldiers/spies/etc. from being subject to the same results if they are captured.
I don't think that proves Straight was "run by the govt", though, I think they already got all the data they needed from Stanford, Synanon, the Seed, and People's Temple. Straight was just the "private sector" putting those techniques to use, I believe. Sure, they had some political types in the organization, but like you said earlier, "the Gov't" is made up of several little fiefdoms, it is a bureuacracy, one hand doesn't always know what the other is doing.....