Hey, thank you very much for this extensive review. I think I never answered to reviews before, but this one was so detailed it deserved a little contribution in return, and this will also work as an occasion to say something I've been considering for a while now.
Coming to the matter of your suggestion: I think you're pretty much right. Sooner or later, with so many giants spread over the territory of the (at this point it should be clear) fictional nation, any form of human response should materialize. More so, considering the interview transmitted in the city of crystals, and the whole country people story. And so far I've delayed this for some reasons. 

1) (Normal people POV) First and foremost, I don't like writing from the normal people pov. BUT, we'll get to this at the end of this response.

2) (Military) - The military option has been delayed so far for many reason:
Premise - At the beginning, the intro for this story wasn't an intro at all (there was no hint to the content of the story), it was an explanation. An explanation of the very reason behind the creation and later of the publication of this story. The concept of random people growing to giant proportion causing havoc and destruction is the core business of this whole genre, there's already plenty of content about it on this site or on every other site like this. Most likely a lot of content better than mine. The thing has been explored "objectively" from every direction through and through. We've grown every kind of person (with a striking majority of human adult women), here or there some couples, and in about 20 years of exploration I've found some rare occurrence of groups of giants in which other dynamics rather than sexual intercourse (which is always some sort of mystic sexual inebriation without much to say about real, material sex as that in which humans of our world are normally involved) are considered.
This last very small collection of the rarest gems I've learned to be what really "gets me going" and what I intensely seek in the world of macrophilia (and related areas). Those incredibly rare occasion in which we observe giants interact with others on a par through real, stakes-laden, reasoning, emoting, persuading, etc. Not just to have sex or deride the normal people condition of not being giants. And I wanted some place where to "magnify" that element/potentiality of giants' stories. Somewhere to put at the center of the story exactly the interaction between giants as normal people in an abnormal situation + the psychological process, the inner contradictions, the internal debate, the biases, etc. connected to living such an experience and to live it together with people these giants have to account for, people that don't come out of nowhere and are not just sexual objects/objectives. 
Materially speaking, I wanted giants discussing, doubting, willing and not willing, arguing and even fighting about being giants and the meaning of being such within themselves and with others. A good part of this at chapter 64 has already happened, but there's still more to come. At least in my vague plan, other reasons should emerge to be or become giants and how and why profit of this condition.
All this to clarify that the normal giants' stories tropes and situation are not the content or the intent of this story but just a mean to an end, and the end is to tell a story whose main focus is a narrative (conflicted, multi-prospective, multifarious and inconclusive) inquiry into the giant condition itself. I just didn't feel like it was something to express in some sort of argumentative discourse, but far better expressed through a story and through the voices of living characters, all of them with some depth, some motives, intents, fears, desires, limits and aspirations.

ALL THAT BEING SAID, the military intervention poses a strong threat to the possibility of the story itself:
1) The military intervene and they are easily disbanded - This is the least problematic solution because this way the characters don't have to deal with them too much and we can go back to the other ongoing conflicts; but I honestly enormously dislike when this happens in other stories. I'm not judging, to each their taste. I just find it unappealing that to the sheer fact of "gianthood" sometimes other powers are added: an unlimited control of one's own and other's size; omnipotence in general; invulnerability more in particular. I think it defuses the entire attractiveness of giants, because their size is no more the core problem but just a further feature. It's not anymore a macrophilia story but just another bad-superman/women scenario. It's great, it has a lot of fans, I'm not one of them. 
2) The military intervene and they're effective. It would immediately stop the "discussion" which is the actual story and bring the whole thing within this or that story-track about giants against the world. As I said, this is not a story told from nowhere about giants and not-giants, but a story about "the problems of being giants" told as close as possible to the perspective of the giants themselves (that's more or less why there's even a first person perspective among the others). Therefore any military intervention should be coherent with the core intent of the thing ("should" = that's the story I wanted to tell and hence I wrote, that's the story I wanted to exist and hence I published).

Therefore, the military intervention may happen as soon as it is functional to develop the core intent of the story. At this point, there's something more I'd like to bring out of the giants alone. If I were to make a prediction, I'd say that the military will find their rightful way in the matter in the Selena's story-line (mind you, the institutionalized use of violence strikes first against the non-caucasian source of problems, what a surprise!) and later propagate to the others. 

To end this, although, I want to rapidly come back to the normal people pov. As I said, I'm not interested in telling that one story, but unlike the military intervention, humans pov wouldn't infringe the core intent of the story. And yet I'd be pretty bored to write about it. THEREFORE, I wanted this one reply to be not only some sort of author's apology, but also an invite: 

- Whoever may be interested, is absolutely and completely allowed to use the canvas of this story to revisit all the events from the normal people POV.

+ There's already some characters to use (Missy and her troupe, Veronica the ambitious journalist, Mr Eltern and the kids traveling to the city of crystals or the whole crew from the farms they left behind) and even if I had here and there some vague intention to recover any of them, I'd consider canon whatever anyone would want to write about them which respects what was already told of the characters and the general story trajectory they had commenced. 

If this happens, if anyone really was interested in it, I'd be pretty open to consider the same for when and where the military show up in the story as well.