I don't think he's saying you can't clear territory: just that clearing territory doesn't work like it used to. Here's an example off the top of my head. Kicking Philippine rebels off an island and holding the village might work because the villagers lose all communication with their leaders. (Holding territory destroys command and control.)
That's not true anymore. Occupying Sadr City won't do any good because Sadr can pick up a cell phone and order attacks whenever he wants attacks. Killing Sadr doesn't do any good, because people can post his old anti US speeches on the Internet. Holding territory no longer denies command and control to the insurgents.
To use an Iraq example. Holding territory in Ramadi didn't work. Cutting a deal with local sheiks did. Occupying Afghanistan just forced Al Qaeda to the net and terrorist attacks have increased.
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