dtroja
Thanks for your service. And a sincere !Congratulations! on your success. But the title is link-bait which exploits the experience of those who had it much tougher than you. Stay in your lane.
The military has many places to train. There are places to shoot. There are places to blow things up. There are places to maneuver tanks. There are few places which include a civilian population.
That event was a training event for parts of SOF community; a community which is operating in over 100 countries at any given time. Very few of those countries are in active conflict... by that I'm referring to a shooting-war. These types of units must be prepared to perform their tasks in a peaceful environment without undue notice. Units are typically small; think less than 15 people with maybe 2-3 civilian-style vehicles. They operate dispersed over large areas. They don't have tanks. When such units move around, they are usually in non-military vehicles and attire. For this kind of unit many tasks are related to interacting with people, either local security forces (police and military) or local civilians. There is a legitimate need to train on such tasks.
These types of training events focus on the military tasks which need this kind of a training environment (large area, dispersed operations, civilian population). Training for tasks related to shooting and blowing things up happen in areas the military 'owns.'
I highly doubt any of the training plans included detonations, live-fire, or even dry-fire events anywhere outside the normal military training areas. It's more likely that the interactions with the actual civilian population would have been completely un-noticed. An interaction would more likely look like a strangely fit group of guys were putting fuel in their Toyota and then drove away... maybe making a few jokes with you while you both wait at the pump. Almost certainly the same (or less) level of impact as your average Reserve or National Guard unit driving around on a weekend.
Tough, frequent, realistic training is exactly what is required to keep certain parts of the military prepared. I'm not talking about logisticians or acquisitions types. Personnel turnover is a problem. People must learn how to work together. For people like you and I, we have the opportunity to learn to work with our coworkers... every day! In the military, a service member only really learns how to work with their coworkers during these kinds of exercises. When it's cold. When it's dark. When everyone is tired and hungry.
You've also suggested that "the military has the tactics and hardware to engage in urban settings down pat" ... and you're absolutely correct. Senior personnel have lessons learned. Those lessons are captured in various documents. However, much like a start-up, execution is everything. The execution comes from personnel who typically have just a few years experience. There is an enormous amount of knowledge which must be transferred in a short period of time. These training events are how the lessons and doctrine are shared with those junior leaders. Classroom instruction is not sufficient.
Finally, I will disagree that the training event was "odd in it's conception." Certain parts of the military perform these kinds of exercises regularly. The only part of this exercise which was odd was the amount of attention it garnered.