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Actually the FEV was an attempt by the government to create super soldiers to fight the Chinese. That was the goal but it didn't really work and they shifted gears to make it into a bio weapon. They would disperse it over a Chinese village and they'd all transform into super mutants then taking on greater China. After the super mutants win you don't even need to fight them anymore. They're sterile now so you can just wait them out. Starvation will get them.
This isn't really as red pilled as you think it is when you remember the master just wanted an army to take over the wasteland. It wasn't about having an obedient fighting force it was for the ranting madness of an unhinged maniac. Even more when you discover in later games that the fed tested it by doping the water in a small white community turning everyone into super mutants.
Another point against the FEV post great war is it only works on people who don't have large amounts of radiation in their body so your pool of acceptable candidates is very limited and most won't be very smart. Additionally the institute already made a cure. Long term the masters plan wouldn't have worked.
