But in 200 years, they haven't had to use these capabilities. On the one hand, the tremendous defense capabilities of the Swiss makes them an unappealing target for potential invaders. More importantly, their strong traditions of neutrality and non-aggression have successfully kept anyone from really wanting to invade them in the first place.
These two factors are related. If your people are confident they will never be taken over and make that security real by giving them a weapon and plenty of access to fallout shelters, it's tough to get them riled up enough to attack someone else. And it's hard to find people willing to launch terrorist attacks on a neutral nation.
It is sometimes claimed that our economic position in the world would be endangered if we took a more isolationist approach to our military endeavors. Switzerland's almost-identical record on GDP per capita puts that argument to bed.
We are currently killing people in several countries and creating new enemies every time we do it, whether or not those killed needed to be for some objective reason. We wind up more fearful and less secure than we would be if the Department of Defense used its massive budget for actual defense.