"Fallujah became symbolic on both sides that things were out of control over there. In the bigger picture, we [Americans] are incidental over there in that this is a struggle between Iraqis over what Iraq will be when we leave. The solution is not going to be a military one, it has to be some kind of political deal that is uniquely Arab. But that deal also has to be backed up with power and force, and Fallujah being taken down now demonstrates to all concerned that Allawi will not shrink from that course of action."
In other words, they destroyed Falluja to make it easier for Allawi by terrifying any possible resistance. This is exactly the same policy the Americans attempted in Vietnam, and we know how successful that was. The attack on Falluja was just another Lansdale/Conein psych op to attempt to terrify the Iraqi people into stopping their resistance of the American occupation, with the added benefit that it created turmoil in Sunni-Shi'ite relations, leading to the Israeli/neocon goal of breaking Iraq up into small, unthreatening statelets.
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