Why didn't Nichols cast Dustin Hoffman as Yossarian?
Personally, I think that Alan Arkin is about as perfect a Yossarian as there could be, except certain times, he is took shrill, and when he is saying "There there" to the dying Snowden, it is completely without any feeling or emotion.
Nichols says in the DVD commentary that Arkin was perfect for the role as he did not court audience sympathey, in fact, as an actor, he tried to push them away, which is essential to Yossarian's character. He contrasted to him to an audience friendly actor like Dustin Hoffman, but he doesn't say anything about whether he ever thought of casting Hoffman, that I can remember.
I wonder if their stormy relationship on THE GRADUATE prevented any further collaboration. Hoffman likely would have been superb as Yossarian.
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"Why do people always laugh in the wrong places?"
--Ethel Merman