Citing criticism about poor taste and insensitivity as a reason for dropping the game is not convincing at all. Gaming, shooting games in particular, were always criticized for lack of taste and bad influence that they supposedly have. But when was it the last time that one was actually pulled off the shelves for that reason? If anything, bad taste is somewhat of game industry's trademark, and perhaps, a selling point.

The main difference between this game and any other shooting/ survival game is its subject matter. This one talks about recent, real life events, and it talks about it in words of soldiers who were actually there - the game is largely based on their stories, diaries, videos, photos, etc, documenting their experience of Falujjah, which renders a picture significantly different from that of the officialdom.

Add to this that games are far more efficient in spreading ideas and memes than books and movies ever were, and you have a recipe for a disaster, from the establishment's point of view. It interesting to note that Six Days in Fallujah got attacked by a broad spectrum of organizations, ranging from Iraq war veterans to peace groups, in Europe and America alike.

Of course, it's entirely possible that the whole hype is just a promotional gimmick.