It wasn't anticipated that she would ever be the wife she once was, because the lawsuit was about compensation for future loss - and the money awarded to Terri herself was to help Michael take care of her in her current state. He specifically asked for compensation for future medical care, and he and his lawyers estimated her life expectancy at fifty years.
At the time the lawsuit was FILED, yes. He didn't know if and when she would recover, and what her condition would be IF she recovered. Patients have recovered from PVS, you know. It's just that, as time goes on, the chances are lessened.
Sure, I believe it was his intent to care for her. But after 8 years, all hope was gone (no one has recovered from PVS after 3 years).
WE have the benefit of hindsight. Michael didn't, and couldn't, have known at that time how things were going to transpire.