Just wrote an intro and wiped it. So this is as quick as I can sum up.
EU response is extension to 22nd May if May passes her deal by 29th March
Or an unconditional extension to 12 April which could be extended with a plan and understanding to take part in EU elections.
This isn't what may wanted. It gives her less time and leverage
It opens up the possibility of her being ousted as PM in the next couple of days. Graham Brady asked her to quit on Monday. Remain Cabinet ministers are threatening to quit if May whips a vote to support no deal.
The talk is May has indeed flipped to supporting no deal with many think she's pretty much gone full on Colonel Kurtz.
The EU are in effect supporting parliamentary sovereignty and are being incredibly reasonable.
May now has to decide whether to accept.
The whole situation looks explosive and likely that one half of the cabinet or the other are on the brink of walking. And May's power is so shattered.
However she remains the gatekeeper and as it stands if she's hell bent on no deal, it will be extremely difficult for Parliament to prevent that.