Overseas, not military.  The rub:

“Mr. Carey said he had changed the wording in response to requests from state election officials. Voters from some states, he said, receive federal, state and local ballots only if they indicate an intention to return — no matter when — while those who express no intention to return receive only federal ballots.”

Exactly.  Overseas voters shouldn’t be participating in state elections if they never intend to return to the United States.  Good call by Bob Carey.