As far as I know (but I might be wrong) military service isn't compulsory for the Monagasques. However, should their fancy take them there, they are allowed to serve in the French army. Monaco itself has no army, but it has a lot of policemen and -women. (Most of them French, I believe).
And with regard to the topic of this thread, so far I haven't seen much commendable behavior from all three Casiraghis. From what I've seen and read I have them down as spoilt rich kids à la Paris Hilton & co. For that matter, they should get along well with Charlene. They are more her age than Albert is anyway.

I think we'll just have to hope that Albert will live to a ripe old age as Monaco might really have succession issues when he dies...

But governments have always managed to work around and survive bad rulers, so maybe there's some hope yet.