Funnily enough the government and the Army Command both had decided they should join the war by 1917, they just disagreed on which side to join and when they finally solved that conflict the war was almost over anyway.
The Dutch army in '40 did okay considering the Germans expected victory in a single day and it took them 5. Especially the air force and anti-air troops, who gave the German Air Force and Airlanding troops a significant blow that effected its strenght for the Battle of Britain. The Grebbeberg battle was one big mess, sure, but I wouldn't call the entire invasion one big militairy blunder. Belgium held out longer partly because they actually received significant Allied support which the Netherlands never received, partly because they weren't terror-bombed into a surrender.