He wasn't too sure that Manstein had in fact tought the entire Kharkov event up himself but had been lucky. He wouldn't like to risk another collapse. Also giving up ground on a major scale could turn his allies against him, certainly not needed. Or at least this was what he thought.

The truth is that the backhand blow would likely have been the best chance of victory. It would have been a battle of maneuver which the Germans were still much better at than the Russians (individual soldier's training more important here) and there was a lot of land to be used. It would basically use the expanses of Russia against her. Trade land for losses, it could have worn the Russians down. But such victories would never be enough to force a settlement, Germany would have been on the defensive and percieved as the weaker. An offensive battle would be needed for any such case.