In the practical strategic sense, true, but if the opposition can sustain fighting in the capital, even on a hit-and-run basis, there's a real psychological impact. I'd guess there are a fair number of people in government and the military keeping as much as possible on the fence and waiting to see who looks likely to come out on top. The ability to create the perception that you're winning is important, even if that perception isn't really based on much.
Chemical weapons would be a last resort and I suspect the rumors are just that... not sure how much the regime would really gain, and they'd just make it more difficult to retain even the tepid support they have from Russia and China.
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