Zarban, you have a major flaw in your premise. Dr. Manhattan never worked with Ozy, and probably never would.
"People seem to regard Watchmen as great because it supposedly depicts what would really happen if superheroes were real, but it really depicts more like the worst case scenario of what could happen."
There is a difference between a "Superhero" in the classic sense that we know it, and the superheroes of Watchmen. The superheroes of watchmen are not these shining perfect specimens of the human existence, they are real human beings that simply decided to do this. They are as fucked up as the next guy and they deal with it like any human would (As much as I love Batman, how many people would actually exile themselves for how ever many years and learn to become one with themselves, er whatever actually goes on up there. No, they get shitfaced and scream at the moon.)
I think it's not so much a case of "If superheroes were real, as it is , "what if people tried to be Superheros" (The Doc notwithstanding).
I actually just finished reading the novel (Like yesterday actually) and I thought it was probably one of the coolest things I have ever read. Namely because these are real people aspiring to be something more, and some fail, some succeed, and some just get fucked up beyond any imagining.
"Besides, of all the wars superbeings could win, Vietnam wasn't one of them. Machine guns, explosions, and flame-throwers? That's exactly what US troops used!"
You seem to be missing the part where the Doc was leveling the forest from the roots up. Thus making flamethrowers, explosions and machine guns a little more useful.
I'm sure I have more to say on this, but I can't think of it at the moment.