Quote Originally Posted by Timothy OConnor View Post
But at what point does such dispersion become a liability when trying to clear and control battle space such as an urban environment?
When you can't defeat the enemy! It's that obvious I'm afraid and there are no clear cut cook book answers. It depends on how well you are trained and lead, and how effective you concept of operations is. If you are too dispersed to effectively perform the tasks and actions you need to achieve your mission the you are dispersed too far.

The biggest factor is usually communications and manoeuvre. Manoeuvre gives you freedom of action, which is why protected mobility is so essential to infantry operations, especially if a competent enemy has it and you don't.