It seems to have worked out for them so far, surviving being right in the middle of 2 world wars.
Their conscription system is only a part of the story.
Switzerland was not invaded in WW2 because:
A. it is geographically difficult to invade, has a lot of bunkers and armed people.
B. because the Nazis used it to exchange gold and currency to Swiss Francs and get free access to trade with neutral countries. Switzerland was more useful to Germany as a “banker” and middleman during trade embargoes than it could have ever been as occupied territory.
Their conscription system is only a part of the story. Switzerland was not invaded in WW2 because:
A. it is geographically difficult to invade, has a lot of bunkers and armed people.
B. because the Nazis used it to exchange gold and currency to Swiss Francs and get free access to trade with neutral countries. Switzerland was more useful to Germany as a “banker” and middleman during trade embargoes than it could have ever been as occupied territory.
https://en.wikipedia.org/wiki/Switzerland_during_World_War_I_and_World_War_II#Financial_relationships_with_Nazi_Germany