I agree with your take on the "settlement". I'ts far too vague and open to tons of interpretations. I think the defense would insist that she admit she made it all up and their clients are innocent. They've been talking tough and I doubt they'd go for anything this vague.
You think the Defense, with every new revelation helping them, would insist on the language in any settlement to read:
I, Crystal, shall herein be referred to as the Lying HO .....
I suspect Cash Micheals is laying the groundwork for the inevitable - CGM deciding not to testify due to stress, death threats, adverse media attention...blah, blah, blah.