He's basically told people that if they want the problem solved, they have more power than the President does insofar as they can vote out the rotten Democrats and demand law and order on a local level much faster and efficiently than Trump mobilizing the National Guard and dealing with endless legal wrangling and endless media hack-jobs.
If the feds come in and break it up by force, yeah, it'd feel good but, nothing will be learned.
The citizens will just assume that if it gets bad enough again in the future, the NG will just show up and deal with it, and the entrenched blue fuckwits will blame "outsiders" for the fact the "peaceful protests" got ruined by violence and that all the shootings and arsons were done by CIA agents to justify bringing in the troops.
Right now, Jenny Durkin is gloriously twisting in the wind hoping this all just goes away, because it took her office 48 hours to acknowledge the CHAZ/CHOP shootings happened, and the way she talks about it, it's clear she hasn't gone down there and taken a look herself, preferring to call it a "block party" and pretend everything is fine....
The instant Federal troops she DIDN'T ask for move in, everyone on team blue will absolve her and the lies that it was all just a peaceful protest become official history. It will go away if Trump moves in, his "threat" to do it was only so people like Durkin would get defensive and say the exact stupid shit they did because the TDS in them says you gotta own Trump at every possible point.
Maybe Trump looks bad, but team blue looks worse, considering Creepy Joe sided with the rioters.
People have been letting mid-level mayors and governors skate by on dumb/destructive policy for too long by just assuming some massive top-down Federal response will fix it all, and while my initial knee-jerk reaction was the same as yours, on retrospect, nothing's gonna get them out if they can just dodge the blame. And if people STILL vote for them, they get what they deserve, there's only so much effort I'll put into trying to help a man who is dead-set on suicide and turns down any offer of help.
People have to realize that ultimately just voting for ONE person every FOUR years isn't ENOUGH to fix all your problems.