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Joseph Fielding Smith Jr. (10th prophet):
When the plan of redemption was presented and Jesus was chosen to be the Redeemer of the world, some rebelled. They were not willing to accept him as "the Lamb slain from the foundation of the world."....In this great rebellion in heaven, Lucifer, or Satan, a son of the morning, and one-third of the hosts thereof were cast out into the earth because Lucifer sought to destroy the free agency of man and the one-third of the spirits sided with him. He sought the throne of God, and put forth his plan in boldness in that great council, declaring that he would save all, that not one soul should be lost, providing God would give him the glory and the honor. When his plan was rejected for a better one, he rebelled and said, as Isaiah states the case: "I will ascend into heaven, I will exalt my throne above the stars of God,....I will be like the Most High."
Source: McConkie, Bruce R., ed. Doctrines of Salvation: Sermons and Writings of Joseph Fielding Smith, Vol. 1. 64. Salt Lake City: Bookcraft, 1954-1955.
Joseph Fielding Smith Jr. (10th prophet):
In this rebellion, in which Lucifer attempted to destroy the free agency of the spirits of men, he enticed one-third of the spirits to follow him. He and his followers were cast out of heaven, and when the earth was prepared, they came to it as spirits, being denied the privilege of birth and of receiving tabernacles of flesh in the world.
It was of this casting out of Satan to which Christ made reference when he said to his disciples, "I beheld Satan as lightning fall from heaven." This is the same "dragon" spoken of by John in the Revelation, whose tail drew one-third of the stars of heaven, and who fought against Michael and his angels and was cast out of heaven, and who came to the earth to continue the fight against the Church of Jesus Christ and the priesthood.
Source: McConkie, Bruce R., ed. Doctrines of Salvation: Sermons and Writings of Joseph Fielding Smith, Vol. 2. 219. Salt Lake City: Bookcraft, 1954-1955.
God didn't fight personally, the angel Michael led the faithful in battle. He later came to Earth as the first man, Adam.(I'll explain this more at a later date.)
The gist of this is that Satan would have forced everyone to obey all the laws, there would be no temptation in life, therefore everyone would be saved. Christ's plan called for everyone to exercise their free agency, to experience temptation and if they rejected it, would grow in knowledge and return to God.