Thanks, Targan. You raise a very important consideration that I think the rest of us (or I, at least) have missed. I think your psychological impact explanation works pretty well. It would explain the relatively bloodless failure of the offensive and the mostly intact conditions of most of the NATO units of 3rd Army when they end up back in their cantonments.
I think we still need to explain why none of them were shifted south, though, since that's where the Soviets had done most of their damage. Perhaps the numerous small, but mobile Polish and Soviet cavalry units gave NATO military intel the impression that the WTO forces were way more powerful than they actually were, kind of like the finale in the film
Three Amigos. (Yes, I've just connected a broad '80s comedy set in 1920s Mexico with Twilight 2000

) It was all the 3rd could do to turn around under pressure and return to its cantonments in northern Germany.
In fact, I will go one up on you and theorize that the cavalry units would actually have been even
more mobile, in the long run, at least, than motorized units since cavalry wouldn't have to stop as often to brew more fuel (and they're not as reliant on roads).
Just to reassure you that I'm not super anal-retentive, the reason I'm being so detail oriented when it comes to the units involved in 3rd Army's offensive (and where they are when) is I'm working on a campaign setting revolving around the Baltic city of Elblag. I want to be able to convincingly explain why cut-off elements of American units (easy), German (not too hard), Canadian (getting tougher), and Danish units (the real challenge) are congregating there.
I think you may have gotten me most of the way there, Targan.
@Legbreaker: I still don't think 3rd army would detach most of its hard-earned fuel (almost 6 division's worth, not counting the U.S. 5th or 8th Mech IDs) and send it in a wide, amphibious flanking manouver with the hope of meeting up with it later. That's not just daring, it's plain rash. Plus, I think that most units would be used to hauling around most of its own fuel and the equipment to brew more. It would be routine by 2000. Canon implies this time and again. I will use your idea for the 2nd MarDiv's fuel quandry, though. One division losing almost all of its fuel in one fell swoop works for me. Thanks for that.