They seem to give up after the police station massacre
well they were dead
You can even hear a radio news broadcast mentioning that the "biggest manhunt in US law enforcement history was under way". Yet there's not a cop in sight for the rest of the movie. Where were they hunting him? Aruba?
There was probably a deleted scene when Arnold killed even more police during the manhunt to the point that there weren't any more left
So why isn't the entire cop free city looting and rioting?
Well there was another deleted scene where Arnold killed all the rioters too
They died.
They wouldn't believe the crushed metal robot in the hydrolic press was the one who massacred their fellow officers.