If you falsely believe the top goals of Congressional Republicans are to reduce the deficit or cut government spending then resolving this debt ceiling stand off by adopting McConnell’s fall back would represent of real missed opportunity and defeat for Republicans. On the other hand if you take the Republicans at their word this isn’t a terrible outcome for them.
Republicans got Obama to go on record supporting these very unpopular cut without the GOP also needing to agree to them. I imagine the Republicans are already working Obama support for cutting Social Security into some really good 30 second campaign ads.