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The EU won't cave because the UK can't get an agreement on the backstop to keep peace in Ireland though...that May signed off!
So it looks like May's crappy WA as an extension is rearranging the deck chairs on the Titanic unless May offers a single market / customs union brexit OR nothing unless parliament blocks a no deal and backs a vote.
Or May resigns and more chaos reigns.
Parliament seem determined to not allow a hard brexit. So, either the EU cave with an agreeable amendment that will get through (or hard brexiteers back down), or parliament will have to force an extension (a revocal of A50 being too contentious).
If the EU haven't caved at the wire (or the hard brexiteers backed down), there seems little reason why the EU would then budge on negotiation, in which case handing the outcome back to a referendum would seem to be the only viable option?