I think Bush and team are trying to control the situation without spinning the rest of the country out of control. The Marines can do a surgically precise job of dealing with the terrorists without wiping out innocents. A bull in the china shop approach with bombs would set off trouble in other cities.
Yes, I agree. That is part of the fine-line our commanders and generals must juggle. Hopefully the innocents will be allowed to leave Fallujah/Najaf. We cannot fight this battle with snipers alone. At some point, and that point seems to be a couple of days from now since that is the "turn in your weapons" deadline, we have to say "enough" and the bombing begins.
No matter what we do, we could build them new gold mosques, someone is going to complain. Bringing an end to the Fallujah/Najaf situation undoubtedly will cause problems in other cities but this is a war. And it is the birth of a "new" country. There are going to be problems, uprisings and troubles no matter how we handle it, IMO.