Let's follow this.
1. Someone in the Military notices demons.
2. Someone notices they like Sunnydale.
4. Somehow, Maggie Walsh gets involved.
6. Somehow Maggie Walsh gets in command, and sells her idea to make Demon-Human-cyborg hybrids.
7. Somehow, she gets several members of the Army and Marines transfered to her.
9. Somehow she all gets them jobs at UC Sunnydale.
18. The Military gathers intel on the demon world.
19. The events of season 4.
So, what is the probability of this happening? I mean, who put Walsh in charge?
The writers, obviously!
In any case, it's really best not to think about the plausibility (well, plausibility internal to the Buffyverse...) of season four.
You mean like how the human parts of Adam will eventually age and die after 100 years or so?
The entire plot would have been alright if the "Double Life" would have been cut out. And if Adam was more of a curiousity than a Master Plan.
Oh, so where is UC-Sunnydale? We have seen the Scoobies hang out at the Bronze, then make references to walking home. And having a giant UC school sitting outside of your town can really big impact. This is a one club town. How many college towns are one club towns? Yes, I realize that was a pilot statement. And how the heck did they build this giant Batcave under a preexisting structure?
Here in Wolfville (including students there are no more than 10,000 people) we have the Axe, the campus bar, a couple of other bars in town, and no clubs of any kind that I know of (unless you count the Legion - I don't).
What do students do? Go to parties, of course!
However, I get the sense that UC-Sunnydale has more than 4000 students as Acadia does. And Sunnydale seems a lot bigger than it's often said to be.
And speaking of Adam,why create a creature that is hard to kill and that can so easily subvert
your plans in the first place?
It probably did. And Adam did carry out all of Walsh's plans in the end. The whole point was, the Inititive was always unable to control to control the Demons in a way they wanted to, and thought they could.
And what was the theme of Adam anyways? "I'm a poorly constructed Cyborg, let me reflect on that."