You're correct that this was a "state sponsored riot". Policing 101 creates a police line between the two groups, disarms people, and quickly takes down and cuffs anyone who throws a punch, etc. The Mayor, police and civic leaders created the Byzantine spectacle of scores of people pummeling and assaulting each other for a few hours on the public square. The police set up on three sides to ensure the mutual combatants were "green lighted" for the riot. Two sides of the same hate-filled coin. Virtually no one was arrested after the enormous melees. Charlottesville institutionalized violence against views they don't agree with. Just like Berkeley, CA. Or Chicago, IL. 

The strongest message was to let the WN et al nimrods march in empty streets, with no audience, so they could rage against the air. That would've been a powerful message that the WN, etc. had no "juice". Instead they reacted with fear. Perfect recruiting tool for these nimrods. Car driver will get the death penalty. Good.