I see what you're saying about dilution. Each methyl radical will run into an O2 much more often than a Cl2. But that doesn't mean the latter doesn't happen at all. There are rate equations and (so far as I can see) you get a long menu of reaction products, at decreasing concentrations.
Even ignoring toxic organics and organochlorides ... the proposal to release chlorine gas seems to demand very careful thought. Similar programs were tried during World War I, with negative effects on human subjects.
Not loving the HCl either, though I've read your comments on that.