I think it's case of damned if they do damned if they don't.
The US position has become untenable. But I am under no illusion that the system of Internet governance will be going from bad the worse.
The golden era of the free Internet is already a thing of the past, and the day of stable DNS are gone too.
But read the statement carefully. At this point they are giving nothing away really. They are basically saying to the world, come up with a proposal and we'll see.