Update: CNN reporting that Pistolis will be discharged.https://amp.cnn.com/cnn/2018/06/20/us/marine-court-martial-charlottesville-trnd/index.html?__twitter_impression=true …
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Other than honorable is not actually specifically bad. It's an administrative discharge very commonly (mis)used against servicemembers who really should have been assessed for PTSD and treated for it, or discharged honorable - medical.
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but yes. they do that to avoid giving those service members benefits, although OTH can still receive VA medical care if the discharge really was administrative.
End of conversation
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