Ideally yes, if they are designed to be used to kill people. You don't want a whole industry that has the incentive to want more dead people just so it can stay alive.
On the contrary, these tools would cause less dead people. That’s the whole point and why the military uses it. By using tools that provide higher fidelity on threats, the military becomes more efficient and precise, which leads to less casualties and collateral damage.
Cool, but not related to whether they should be built by the government or private companies. Also, if all wars ended tomorrow, would Palantir's profits increase or decrease?