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Every conflict is merely a prelude to negotiations. The problem is that Democrats genuinely value the institutions of federal government being threatened with defunding, while Republicans only really see these as pain points with which to extort the liberal establishment for more social conservative policy.
Dems are primed to cave over time, particularly when the heavily privatized corporate media is on the side of the Republicans.
That's definitely been the dynamic in the past, but I think things have finally gotten to the point where Dems are realizing their isn't much left to lose. Their internal polling and party leadership is telling them to hold fast (arc).
Also, I don't have the link handy, but there was a KFF poll like last week saying something like 70% of self identified Republicans want the ACA subsidies Dems are fighting for extended. Any way you slice this, it's a political disaster for the GOP and it's only going to keep getting worse for them as people's rent comes due and credit card bills come in and cheap talking points about "extremist terrorist liberal blah blah blah" don't pay those bills.
The thing to lose is their mega-donors and their future careers as pundits/board members/lobbyists at friendly US Government contracting firms.
Study: Congress literally doesn’t care what you think
American public opinion exists as a bellweather for advertisers and marketing teams. It does not exist to inform public policy but to inform policymakers of what they need to do to reset public opinion (ie, Ban TikTok, greenlight more media consolidation through the FCC, invoke the Espionage Act against whistleblowers, bomb journalists covering a genocide, etc)