From: Zagreb, Croatia
However, there is virtually no value in holding that area in GGWaW. Thats just how it is - and why its wise for the AI to pull back. It would be an even worse AI if it kept DAK in North Africa without pushing hard for Suez.
Then why don't German AI try to push hard for Suez once in a while?
But, you most certainly cannot in good faith ask that the AI should keep DAK in a worthless North Africa - yet that seem to be exactly what you are asking for.
From German AI standpoint, Western France is a worthless territory as well, it simply refuses to invest in its defense. Italian territories seem worthless to German AI as well. In this it is helped by Allied AI that refuses to invade North Italy even when it is without land units. Entire Italian fleet happily sinks Allied transports in the Mediterranean while Allied and German armies reenact WW1 in Fall 1945, because Allies do not try to invade Italy.
When I first asked this question, someone replied how withdrawal of DAK was hardcoded into German AI. Now, majority of players rarely plays anything but 1940 scenario where DAK isn't there. I, on the other hand, prefer to play 1941 scenario since it resembles WW2 better in my opinion. If DAK is placed there for historical reasons, then why shouldn't German AI be allowed to "think" for itself what to do with it? The Egypt territory is easily taken in 1941 scenario and then it should be up to German AI to decide whether to push for Cairo or not.
Instead, with mandatory withdrawal from Egypt, Allied AI is given victory for free, while German AI gains nothing in return since it usually squanders its panzerkorps sending them in pairs alone next to huge Soviet pile in Moscow.