Not so! Not so! Don't let what they say in the advertisement dissuade you. I just completed the full interview process and was offered a position at the end of it. I declined because I'm a Feddie (& like you, a Veteran) and they offered no reinstatement provision if I jumped ship from my current agency to theirs -- i.e., I'm could be completely out of a job anywhere between one pay period to at most six years after joining USDS. THAT was the problem -- no job security. They are severely limiting the type of folks they're attracting with that model (i.e., the unemployed, risk-takers, or those who a family is not relying on for income).
BUT... I was told three times during the interview that teleworking would be o.k. and that I might have to travel about once a month or so.
The USDS leadership (and enough key staffers) are indeed appointees -- that's a concern. And if you look at their bios, many have strong & active ties to the Obama election efforts. That will not escape a party-change in the administration should it happen unless you have a "best for the country" administration philosophy come in and they take a truly non-partisan, objective view of what needs to continue.
Ala "improving gov efficiency through smart use of tech"...I've worked in mil/Fed IT/telecom/technology-development for nearly 30 years. The problem isn't a lack of desire by the metal-benders trying to employ better/faster/cheaper tech, the problem is getting the Jabba-the-Hut career-protected SESs and their minions out of the way, along with instituting Fed procurement and contracting processes that actually facilitate a delivery timeline that at least keeps up with Moore's Law.
The challenge that USDS will need to overcome is one of culture and regulation bureaucracy, not one of throwing a unicorn cavalry at various IT dragons. You go pure "change from within", you'll fail. You go pure newbie/private sector, you'll fail. You need to find fresh and innovative eyes and pair them up with existing Fed ITers that haven't yet been jaded into submission.
Like you, I'm excited to see how it turns out. They need to succeed. If they fail, it will be a long-term failure, and that will do no one any good.