None of the European powers were able to retain their African colonies for much longer. You have to remember the French experience in Indochina would have colored their view. You also have to remember DeGaulle's view of French resistance in WWII and what was required to subdue a local population.
Most notably, the early 1960's was the beginning of the Apartheid resistance in South Africa. The Afrikaner government grew increasingly more stringent and created an oppressive police state in order to subdue the majority population.
If looking at the events of the time from DeGaulle's perspective, you would have had rising evidence of the level of oppression needed to retain control, the continuation of the Vietcong movement in Indochina several years after the French loss and the knowledge of what a war would mean in terms of politcal capital and population weariness, and a rising influence of the Soviet Union in world affairs and sympathetic followers in France that would use the Algerian war for their means.
The Soviet/Communist aspect is something you need to consider. The French troops in WWI were close to the same level of mutiny and collapse that caused the Russian Revolution. In several parts of the line, French troops DID mutiny and revolt. France could have easily had their own 1917 revolution except that the Americans entering the war provided a relief that provided hope.
A drawn out guerilla war in Algeria, on the heals of the defeat in Indochina to Communists, combined with a rising Soviet influence and an imbedded Communist party in France could have led to another French government collapse.
No, DeGaulle played it smart. He folded when he had the chance, knowing that inevitably he would need to fold and did so before a long war that he would not have won.
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