She's essentially giving Putin everything he wants:
a) 'Decentralization' means phony 'republics' that will just be annexed to Russia like Ossetia was from Georgia;
b) a 'truce' means Russia will simply move troops directly into eastern Ukraine without opposition.
The Ukrainians may just say, 'screw you', but more politely. Or even better, get together with the Poles and suddenly find 'technical' difficulties delivering gas to Germany.
Maybe some of these countries between EUSSR and Soviet Russia should create their own union, Ukraine and Georgia can be the launchpad.