Explain This To Me As If I'm A Two Year Old

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In the movie Philadelphia, Denzel Washington played a lawyer named Joe Miller.  When someone began to explain a case to him, he'd hold up his hand and say, "Wait, explain this to me as if I'm a two year old," in order to make the speaker state their position in simplest term.  Right now I need someone to explain the Bundy occupation to me as if I'm a two year old.

Subject: This USGS satellite image of the MNWR headquarters complex is 
labeled to show key locations referenced in news reports of the militia 
occupation: (1) fire lookout used by militants as watch tower, (2) MNWR 
offices used as headquarters building, (3) residential buildings used by 
militants as barracks and canteen. | Date: 01/11/2016 | This work is in the 
public domain in the United States because it is a work of the United States 
Federal Government under the terms of Title 17, Chapter 1, Section 105 of 
the US Code.

Last week I rushed to post my thoughts about it, thinking the whole thing would be over a day or two later.  A week later it's still going on.  On advice from the FBI, occupiers are allowed to receive shipments of food and supplies, they can come & go from building to building within the hijacked federal facility, and water & power have been left on.  Now, a self proclaimed "judge" is being allowed in to hold a makeshift trial accusing the Sheriff of treason.

None of this makes sense to me.  By my way of thinking, law enforcement could accelerate an end to the situation by turning power and water off, blocking outside deliveries and supporters from coming in, and generally making things uncomfortable for the criminals.

OK, I understand wanting to avoid blood shed.  Yet, law enforcement needs to not only be thinking about this incident, but future incidents as well.  Once a precedent of cooperation with such criminals is set, it's going to be harder to dissuade future incidents from occurring.

On Friday, Ammon Bundy is scheduled to propose an "exit strategy."  The only exit strategy which should even be considered, is for the militia members to come out with their hands up.