Collapsing the wormhole was a sound military strategy and should have been done instead of mining the wormhole.
I don't think that was an option after changeling Bashir's screwing up their last collapse the wormhole idea made whatever they had to get rid of to make it collapse stronger.
If they couldn't collapse it by conventional means, Sisko might have been able to convince the Prophets to close the other end of the Wormhole, or deny Dominion traffic through it. Again, all for the sake of Bajor.