So you would rather keep fighting a hopeless war?
The fact that they are attempting to negotiate is proof that there's nothing "hopeless" about it.
Alienating those in the state by allowing the state to paint you as warmongers?
You mean that thng they are already spending untold amounts of treasure doing?
Instead of accepting a refuge and using what you have to keep fighting?
No enemy will ever provide you with "refuge." You pose an existential threat to their precious status quo - they have no intention of peacefully co-existing with you. They want to destroy you utterly and this (supposed) "offer" is designed to put them into a position from which they can eventually do exactly that.
And is being a reservation really a problem?
Why don't you ask all the colonised people of the world that?
You can start leeching all of the radicals from the state.
Are you typing this from within Rojava? Or Chiappas?
Now that is what I would describe as "hopeless."
Political tourism is not going to compensate for you giving up the fight when you had the capitalists on the ropes.
Look, I understand what it is what you are trying to get at... complete victory is an impossibility, even if this hypothetical scenario results in a Dien Bien Phu-style defeat for the capitalists.
But if you're going to negotiate, you're going to have to be in a position to get something more than simply being isolated into a nice, compact target that they can destroy at their leisure once they have recovered from the shock (which they will, because logistical capacity is on their side - not yours).
It's like ole' Sun Tzu says... don't waste your energy trying to figure out what the enemy's intentions are - concentrate on understanding what it is that they are truly capable of and base your strategy on that instead. That is how you avoid traps like the one you have hypothesised here.