Fallujah blew up because of American miscalculation. It still exists because the Army doesn't want high American casualty urban street fighting with insufficient troops and the revolt spreading across the country.
Just the fact they were fighting and how they were fighting cost America Iraq support and unified the opposing factions. Flattening it as you suggest would have cost us more support and universal condemnation. Or is that what you want? Since you keep proposing solutions that would increase hatred for America maybe you are on their side.
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