This seems to get to the heart of one of the key British misunderstandings about Brexit. It is the assumption that there is a particular deal that the EU wants, and that it is willing to face the UK down to get it.
In fact, the EU is open to several types of deal: a Canada style FTA, a customs union, Norway, Norway plus a customs union, and also to WTO and no deal though of course no-one sane actually wants that.
The key EU interest isn't in getting a particular deal with the UK. It's in self-preservation, which means not tearing up the Treaties and the Single Market on behalf of a third country. All of the end-states mentioned above, including no deal at all, are compatible with this.
On the other hand, the cakeist deals desired by HMG are not compatible with this basic EU interest, so they will never fly.
So it isn't about waiting for people to blink to get a better deal for yourself. It's about self-preservation which will always come above any other consideration.
And that means that No Deal is better for the EU than a deal that destroys the EU.
