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DHARMA was inolved in pure scientific experiments, but they were also investigating human psychology and society in order to find, in their words a means to world peace. The island was meant, among other things, to be a living experiment in human society dynamics. Of course, they got into more than what they had bargained for. They knew that the island was special, just how much they know, I don't know. But I believe DHARMA still exists, possibly under another name to the outside world. Richard is very high up in DHARMA I believe. They have the ability to cure cancer, so they could also have age arresting drugs as well. They let Ben have his reign in order to just observe and see what would happen without further involvement. I don't know why the purge was deemed as being necessary. Richard was one of the ones that recruited Julieanne, the pharmaceutical company whose name I can't recall being of course another DHARMA front. DHARMA may in itself be a front for a larger, more sinister organization using promises of world peace and bettering humanity to sucker people in.
So they have the means to make it appear as though the plane crashed in the ocean with no survivors. The dynamic of the island had gotten too "stale" for them with Ben in charge, so they decide to inject some new life and a new society to the island and observe how they deal with the inhabitants and vice versa. Ben has gotten out of hand for them, they hadn't realized the power he weilds through his knowledge gained of the island while he's been living there, but they're begining to get it. I don't know who or what Jacob is, he is the x-factor, maybe no one really understands who or what he is. But they do know they have to take out Ben, so they send in a strike force, including Neal, who has certain sensitivities to metaphysical dimensions. So they know there is a connection between the island and the "spirit world", but I don't know how much DHARMA understands about this.
Oceanic is now out of business (check out their website, it's a gem for fans) having served it's purpose. The bald black guy who organized the team and also visited Hurley as a rep. of Oceanic solidified this theory for me.
There may also be a split in the DHARMA group going on outside of the island, which explains why the mission had to be covert, now George Whatshisface is not available to take their radio calls, but he seemed really interested in what was going on before he realized that the team had essentially failed with Naomi's death.