Blackjack putting it in terms of running away from the fight is throwing an emotional issue in on top of an already complicated tactical fight. That you cannot prove they are civilians does not make them targets.
I agree with you on the fact that just because they cannot be proven as civilians means they are targets part Tom. If commanders become too CoA and risk adverse it has the very real potential to become find, fix, flee. Absolutely nothing emotional about that. Just another possibility.

A story was related to me from A-Stan that kind of illustrates his point. A unit chased insurgents into a village and engaged in a sustained firefight. Instead of assaulting the village, the commander emplaced LP/OPs in overwatch, and withdrew his forces, with a QRF in hiding. That night when the insurgents tried to sneak out of the village they were ambushed and killed. All done without bombing a village that hands the enemy an IO tool. Won't work in every situation (damn METT-TC again), but the commander wisely determined an alternate, less violent way to resolve the problem.
That is a really great point Cavguy. Patiance, cunning, and flexibility and while it will not work in every situation, it shows people another way of getitng the same task accomplished. What I am concerned about is turning compounds into hostage negotiation sites, or setting up a patrol for an ambush as they try to wait out the insurgents who are callign in their buddies. As you said, damned METT-TC.

I also wished to point out that I am in agreement with you fully in regards to air power, and its uses and abuses in sector.