I think the "idea" behind this was not stirring up the locals with a heavy American military force, believing that the big problem in Iraq was resistance to heavy-handed American occupation.
I think this was the wrong lesson learned. Iraq turned chaotic because of a power vacuum, the locals only resented Americans once it became chaotic and American security contractors began to get trigger happy trying to stay alive. In Libya we allowed the same power vacuum to form, with some kind of magical thinking it would turn out differently.
To be honest, I think the contractors should have been a lot more aggressive in their initial defense of the compound (ie, shooting anything or anyone who got close, regardless if they were or weren't shooting). But I think they probably felt like they had to hold back given the prosecutions for the Nisour Square incident.
I was also surprised they were so lightly armed -- I would have expected more 40mm grenades, claymores and possibly at least one .50 caliber machine gun.
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