Continuity mistake: In the flashback to the Watchmen's initial meeting, the Comedian lifts his cigar to his mouth, but in the next shot, both arms are down by his sides. (00:43:10)
Continuity mistake: When Veidt is explaining how he offed the Comedian and killed the fake assassin, Rorschach launches an attack behind him which Veidt blocks, the shot changes in an instant cut and Veidt is now facing Rorschach. (03:00:35)
Answer: The entire reason they don't arrest Veidt is because his actions, while evil and genocidal, did in fact cause the two warring nations to unite. Exposing Veidt would revert the world back to its chaotic state and the peace would end. The millions Veidt killed would've died in vain and the Watchmen can't have that. All of this is discussed in great detail.
Brad ★