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I can see this. Although I'm not entirely sure it's not the natural/neutral position of the EU in this case to not propose a solution. I guess the word just caught me off guard. It insinuated (to me, in that context) the idea that the EU was trying to stifle any potential deal.
I didn't read it like that personally.
Dammit
I think it's a "give a man enough rope" situation. The only solution is to remain in SM/CU, but the EU don't want to present that - Brexiters would go nuts with the "EU dictates blah blah".
If we come to that conclusion ourselves then it's (yet another) massive U-turn from May, not the EU dictating terms.
A theory, anyway.