First I agree with you 100% but remember that storming an embassy is an act of war also and the Carter administration went on with life as usual during the Iranian hostage situation.
I’m with you in spirit, but this was not a “technically US soil” thing. This was IN the US. That is perceived as something quite different. For one thing, it’s a lot easier for them to storm an embassy in their own country vs ship the activity over here. It ramps it up considerably no matter how you slice it.