The electronic structures of FeAs compounds are sensitive to FeAs bonding, which is described unsuccessfully by the local density approximation (LDA). Treating the multiorbital fluctuations from ab inito LDA+Gutzwiller method, we can now predict the correct FeAs bond length and bonding strength, which will explain the observed "soft phonon." The bands are narrowed by a factor of 2 from their LDA widths. The d{3z{2}-r{2}} orbital is pushed up to cross the Fermi level, forming a three-dimensional Fermi surface, which reduces the anisotropy. The interorbital Hund's coupling J rather than U plays a crucial role in obtaining these results.