You're probably right, Judes - but I think we also need to look at it from their angle, in the emotional turmoil they were going through. The point is they definitely didn't want, or see any need, to be "forgiven". To approach it in that way would have meant giving in to the mindset of their opponents. Was that stubborn, unrealistic, and career-threatening? Maybe - but it's also human nature, and from the standpoint of the political point they were trying to defend, a consistent way of looking at the situation. You only need to be forgiven if you're in the wrong - and they and their supporters just didn't see it that way. (Natalie actually did try an apology - probably on management advice - but it was roundly rejected, and she later withdrew it)
Their most confrontational song "Not Ready to Make Nice" (the only new song to chart significantly, reaching the thirties on both Country radio and Adult Contemporary - and, significantly, number one in New Braunfels, the closest station to Roots Country's "mother church" of Gruene Hall, lol) was not Natalie's idea. Co-writer Dan Wilson thought it up as a title and basic theme, and had to discuss with Martie and Emily whether they thought Natalie would go along with it.
In my view, their mistake was not in making that song, but rather in plugging it exclusively in almost all their media appearances. I think there were deeper songs - such as "Voice Inside My Head" and "Silent House", which dealt with the sensitive topics of a mother's regrets after abortion, and the suffering of Alzheimer's Disease - and more stylistic variety, including a Gospel song, "I Hope", a British Isles Folk-styled song, "Bitter End", and an Outlaw Country-styled song "Lubbock or Leave It" Yet these were never promoted, or heard by most of the general public.
Apart from the personal feelings, their reasons for playing up the confrontation angle were probably to gain new support among Pop, Rock and non-Country general music fans - but the long term results of that were relatively disappointing. They did gain support from resentment over the Conservative backlash - but most of that was specific to the issue and not really based on musical appreciation. However they're dressed up, Martie and Emily are Roots Country musicians, stylistically drawing from Mountain Music, Newgrass, Western Music and Roots Rock. Without Natalie, that mixture is hard to sell to commercial Country radio, and even with Natalie, it's hard to sell to Pop.
I think their future will be mainly as a duo, with a smaller audience, based around the festivals and the smaller club venues - which they seem to really enjoy again - but with occasional "legend" trio reunions with short tours to bigger audiences. I think there will definitely be a new CYH album (which is already taking shape), and a fair chance of a new DC album eventually (but much less chance of regular DC releases)