|She had it right but in the wrong order|
Whichever course they choose, the ruling class are in a hopeless mess. The Tories have lost any authority; the Labour Party is dangerously radicalised; any alternative parties (Liberal-Democrats, UKIP, the SNP) have been squeezed out. They are desperate to stave off the threat of a left Labour government, but what alternative do they have? A Tory/DUP government can't survive for more than a few months; it will stagger from vote to vote, at the constant mercy of rebellions, defections and by-election defeats. One option that is being floated is to form some kind of "national government" consisting of the remnants of "New Labour", soft-Brexit Tories, and what's left of the Liberal Democrats.
But such a combination would probably be no more capable of cobbling together a majority than Theresa May plus the DUP; moreover, it would be so blatant and transparent a device that it would only further inflame millions of Labour supporters. Sooner or later they will have to accept the election of a Labour government, and rely on a combination of disloyalty on the part of the PLP right wing (including some of those who are currently belatedly fawning around Corbyn), and the deployment of a whole array of dirty tricks to destabilise and overthrow it: racism, terrorism, economic sabotage, etc.
In such circumstances, Labour should stand firm against any muddle, dithering or timidity and must not shrink from a decisive confrontation.