The war of attrition has ground down the German units, who have no replacements. Meanwhile, the torrent of allied troops from Britain continues. Soon, they will have to cope with 9th Army.
This is what Von Runstedt and Rommel knew would result from a static, give no ground defense, but they could not persuade Hitler.
Runstedt and Guderian wanted to pull back in the east, too.
It’s a good thing Hitler was so incompetent, or the war might have lasted a lot longer.
Rundstedt knew this back in June when he was sacked for telling Keitel "Make peace, you fools!"
Given Hitler's attitude, the disaster at Falaise is just a matter of time. When Cobra was launched, it pretty much meant that all of France was lost. But I can see why Hitler would continue to hold in Normandy as long as possible. The allies were confined to a small area with little room to maneuver, the Germans would never have that short a line to defend, and never have better terrain to defend than the bocage.