The Arab expression Umm al-Ma'arik, meaning literally "mother of battles" would have been better translated as “the great battle,” “the mighty battle,” or even “the decisive battle.” according to a United Nations translator's letter to the The New York Times' editor
The original English quote, as cited by the Independent on January 19 1991, is
“The great, the jewel and the mother of battles has begun”
According to the Arab World Specialist at the Library of Congress, Mary Jane Deeb
“the flamboyant phrasing is rather typical of the Arabic language ... which is very rich in imagery.
“ ‘Mother of battles,’ for example, is merely a literal English translation of the Arabic term for ‘supreme or ultimate battle,’ ” she says. “That is really the best way to say that in Arabic.”
“Saddam Hussein is using language very carefully,” she says. “In some places these are appeals to pan-Arab political unity, in other places to the religious unity of Islam, and in still other places to particular groups within Iraq. But usually these are phrased in ways so as to invoke a continuity of history ... the traditional voice of an Arab leader calling to his people.”
IRAQ, MOTHER OF METAPHOR from The Washington Post; February 13, 1991
From The New York Times, published February 27, 1991
Saddam Hussein's Speech on the 'Withdrawal' of His Army From Kuwait
O great people; O stalwart men in the forces of holy war and faith, glorious men of the mother of battles; O zealous, faithful and sincere people in our glorious nations, and among all Muslims and all virtuous people in the world; O glorious Iraqi women…
We start by saying that on this day, our valiant armed forces will complete their withdrawal from Kuwait. And on this day our fight against aggression and the ranks of infidelity, joined in an ugly coalition comprising 30 countries, which officially entered war against us under the leadership of the United States of America…
Shout for victory, O brothers; shout for your victory and the victory of all honorable people, O Iraqis. You have fought 30 countries, and all the evil and the largest machine of war and destruction in the world that surrounds them. If only one of these countries [the 28 countries deployed in the Gulf area] threatens anyone, this threat will have a swift and direct effect on the dignity, freedom, life, or freedom of this or that country, people and nation. …
O you valiant men; you have fought the armies of 30 states and the capabilities of an even greater number of states which supplied them with the means of aggression and support. Faith, belief, hope and determination continue to fill your chests, souls and hearts.
They have even become deeper, stronger, brighter and more deeply rooted. God is great; God is great; may the lowly be defeated.
Victory is sweet with the help of God.
Interestingly, the word “all” is not used in any of the transcritions above, it makes its appearance in a speech by Dick Cheney, the Secretary of Defense on February 27, 1991.
A few days ago -- or actually several months ago Saddam Hussein promised that he would conduct the “mother of all battles.” And obviously it looks like what's happened is that the mother of all battles has turned into the mother of all retreats (06.29).
The OP's interpretation of the the words of Saddam Hussein, and the English translation of his speeches, which may have sounded hollow vainglorious threats to the West, do not appear to match. Here the term "mother" in the expression “mother of [all] battles” appears to signify greatest, monumental, or ultimate.