I like the explanation given by someone else that it's because its a factor the totalitarian state: its a system of control, a way of organizing and manipulating its people. From a story perspective, this is a good reason, its very thoughtful. Well done.
The truth however is that Verhoeven wanted the movie to have a WWII vibe, and you can't do WWII by nuking and paving from orbit. WWII and nazi references are everywhere in the movie, the bug types have WWII combat machinery equivalents, and that's why this movie resonates. Same reason why Star Wars resonates or Lord of the Rings, our modern science/fantasy drama epics are fundamentally based on the horror and memory of WWI and by extension WWII.
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