For the record, it IS possible to get the Militia and the RDC both neutral to you at the same time. I have now done it.
Actually, I think it MAY be possible to get them both Friendly to you at the same time. But it would take a long time. And I am not sure why Friendly is ever worth the trouble.
It is nice when you have the RDC Neutral or better that you can sail right past their Crime Wave blockades, and trade with the blocked stations.
It is also worth noting that if you answer a distress call where RDC fighter trash are trying to take down one of your fellow traders, whacking RDC fighter/bomber/gunship craft that have gotten out of hand never affects your street cred negatively (not that they are getting home to tell about it.) Taking out a cap ship in a casual encounter counts for more negative rep points when you are Neutral, however. Of course, if you want to finesse those situations, you the player can set your tactics to take our just the fighters, then buzz around distracting the light cap ships of the raid force while the attacked trader and his/her gunships actually does the kill. No negative rep hit, and the trader still graciously rewards you for your help.
FWIW, being Friendly with the Militia does NOT seem to get you a free pass to slip past a Militia Embargo.