Why was the Division inactivated in 1992?
The 8th was chosen for inactivation (it was actually re-flagged as the 1st Armored Division) as part of the drawdown of military forces in Europe after the end of the cold war. There was no longer a need for as many troops without the Russians as a superpower, and meant that some units had to go. The units chosen to be inactivated were done so according to a policy which retained the ones with a combination of the oldest history and service in combat. There was nothing the division did to bring about its end- it was just in the wrong place at the wrong time in the post cold war drawn down. A number of other units suffered the same fate. For a full description of re-flagging and the standards used see Reflagging in the Army.