I lean way to the former.
This must be done extremely carefully with such high stake players. It is beginning to unfold, but it will unfold very slowly and carefully. It is a very precarious political thing to do and the public must be eased into it carefully.
Your analysis is spot on.
The Democrats have been maneuvered into a lose lose political situation.
It is hard to imagine any way to distract their base from this issue.
They will be trying in the coming days.