The "M" and "C" while logical remind the people that you are only one of two factions. Such a symbol would in some ways declare an equality between the factions.
My thinking is that each side might emphasize certain American symbols (which correspond to their loyalty). Perhaps the eagle looking at the arrows for MILGOV and the Presidential seal for CIVGOV. That way you are identifying yourself without providing legitimacy to the other.
If you are a civilian in a CIVGOV controlled area you are not asking "What does that 'C' mean", but you are reassured by seeing the seal of the president. It is a subtle difference but i think it is an important one.
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