If Ukraine made peace on the terms demanded by Moscow, the first likely result in the occupied oblasts would be political persecution/mass deportation of anyone deemed sympathetic to Kyiv, and replacement by ethnic Russians shipped in from elsewhere. That's essentially surrendering millions of Ukrainian citizens to the gulags, or simply being shot.
The second likely result would be greatly increased vulnerability to the remaining Ukrainian rump state. That pretty much guarantees a subsequent Russian invasion a few years down the road to complete the job. And that would likely mean more mass executions, deportations, and persecution of anyone, civilians or military, deemed to have resisted Russia.
The reality is that it is impossible to negotiate around any of those consequences because there is no way to enforce any agreement against Russia. No other country is going to invade those oblasts to stop Russian persecution, and nobody is going to send troops into the rump Ukrainian state that lacks the space to absorb an initial invasion.
Russia, with it's own actions and rhetoric, has turned this into literally a life or death struggle for Ukrainians. So those hoping for Ukrainian capitulation are going to be disappointed because they simply can't
Stupid strategy on Russia's part to remove peace as a viable option for the other side.