a powerful enough propaganda machine to sway the general public.
The one follows the other... and a gigantic propaganda machine is no hypothetical. It already exists. And as you can see happening right now in Gaza, they don't actually even need that propaganda machine working very well to prosecute a war of extermination against you.
At this point it becomes a lot more difficult to paint them as violent terrorists
I hope you don't mind me saying this... but that's extremely naive. Being "involved" with the general populace didn't help the anarchists that was so deeply rooted in immigrant populations of the US during WW1. It didn't help the Black Panthers who were deeply rooted in US urban communities during the Civil Rights movement. The Ukrainians barely remember the Makhnovists - the memory of the Torch Brigade and the SECC has been completely wiped from South African's minds. All of them were deeply "involved" in the general populace.
Everyone in that society is by my definition anarchist.
That's no different than saying everyone in the USSR was a Marxist, or that everyone in the US is a liberal.
Consider this... when the Makhnovists decided to replace the civilian section of the Kontrrazvedska (the Makhnovist counter-intelligence network) with the KAD (Commission for Anti-Makhnovist Activity) because the civilian section of the Kontrrazvedska was found to be too heavy-handed, they had to go look far and wide for people that actually understood anarchist political theory well-enough to make it a properly anarchist organ - the vast majority of the people working and bleeding under the Makhnovist flag actually knew very little about anarchism apart from a few slogans.
If your anarchist society relies on the ideologically pure, your society is screwed - in fact, if you rely on the ideologically pure it will nnever come into existence in the first place.
When you give up your dependency on authority you become an anarchist.
I don't understand what this means... I don't go to the doctor to tell them how to be a doctor.
I’m ok with political reservations and not native ones.
Native reservations are political. They are designed to imprison and contain - and that is exactly what the capitalists are offering you in this hypothetical situation of yours.
In this scenario you already are isolated.
No, you are not. If you were isolated, they wouldn't be negotiating with you because they'd be too busy exterminating you and crushing your revolt. Isolation means inevitable destruction.