The allegorical reading
The allegorical reading of this history is obviously one worth considering, since Xenophon's reasoning for writing the history seems to be to capture a case study of human power. Xenophon does not give moral opinions about Cyrus's decisions; instead he focuses on the ethical merit of Cyrus's rise to power. Cyrus's authority comes from his mastery of self. In combat and strategy, he seems undefeatable. In rhetoric, politics, and logic, he is superb. The allegory is clearly an ethical praise of maximizing one's potential to become as powerful as possible.
Education and potential
This education is an Adlerian miracle. In terms of Cyrus's potential, he is positioned to be successful from the very beginning. His education was specifically designed after the model of the ancient Spartan schools which are famous for making powerful men and women. Cyrus is trained to thirst for power and to attain that goal by practicing his power until he could defeat any enemy in any conflict. In political debates, he is sharp-tongued and rhetorically sophisticated. He is well-read and philosophical, but not at the expense of his bodily strength—he is trained to become a vital and dangerous warrior as well.
The rise and fall of empires
The archetypal significance of this history is considerable as well. What is it that made Xenophon write a story about Cyrus instead of some other guy? Well, Cyrus participated in the ultimate power game of his time, contributing to the rise and fall of nations and empires. The Medes and Persians are constantly comparing and contrasting political interests with nearby kingdoms, and their united strength only needs a strong leader in order to overthrow Babylon. Cyrus is the catalyst who provides that.
The cult of personality
Cyrus's dominion is a reflection of his own personal authority. We see this through the rise and fall of his cult of personality. When Cyrus is alive and operating the power structure from a sovereign place, the kingdom runs smoothly and gains power. When he dies, the kingdom falls into chaos. This has a positive reading and a negative reading. The positive reading is that Cyrus's power can be seen clearly. The negative reading is that Cyrus's political legacy lacks permanence.
The archetypal defeat of Babylon
The archetypal value of Cyrus's defeat of Babylon is nearly incalculable. Even the Judeo-Christian scriptures speak of the fall of Babylon. In Jewish and Christian prophecy scriptures, the fall of Babylon takes on ultimate importance, making Babylon the center of the Bible's portrait of government and power. Babylon is considered the archetypal prototype for powerful governments. Rome, Britain, and America have all been considered in light of this archetypal idea. Here Xenophon captures a local, historical portrait of the downfall of the archetypal empire.