I lived and worked in Switzerland for a few years. Military service for males is required if you're between 19 and 30; it's voluntary for women. There are ways out of it - you can apply for civilan duty or you can get a doctor to certify that you're not fit for the military - these folks pay additonal income taxes, around 2% if I'm remembering it right. About 30% got some form of exemption when I was there. Military service is very tied into Swiss society, those exempted are not generally business/political leaders. They started cutting military forces in 2004, it's expected to go from 525,000 to about 220,000 by 2011.
They do take their rifle home with them while in the militia and 50 rounds of ammo. Ammo/rifle are supposed to be stored in separate places and the ammo is supposed to be in a tamper proof tin and not opened until you're ordered to open it. When I was there, my co-workers weren't too happy about this rule because they attend (it's not required, but is recommended) various shooting matches during the year where they have to qualify. They had to purchase their ammo for these and it didn't go over well. They were allowed to keep their rifle after their service was completed, but they had to pay for it. Most that I knew gave them back - happy to be rid of it after many years of military service. I doubt having the rifle in the home contributes to the low crime rate - it a whole different culture there. To make a long story short - people don't take stuff that belongs to someone else. I had a bicycle while living there and I never locked it. I'd ride to the lake near my apartment, drop the bike on the grass and go swimming for an hour or more. My bike/bag/etc. never was touched. I'd go shopping on my bike, leaning up on a well outside the shop - again, never bothered. I never locked my apartment door, neither did my neighbors.
One thing to note is they claim they can mobilize their army in under 14 hours. Most buildings have some form of bomb shelter in them, it's required by building codes. Our apartment building had storage units in the basement, the walls of these units could be easily broken down and made beds - enough for everyone in the building. The country is pretty well prepared for war, better than many.