You are so right that it's about this country, which is why you should agree with me that negotiations are folly and should be avoided at all costs.
It's not about morality, it's about the function of government. We all agree that default is bad, right? If Obama gives in to their demands he makes future default basically certain. As soon as it becomes readily apparent that the way to pass laws that you can't pass normally is through debt ceiling brinksmanship, both parties will start using it with the expectation that the governing party will fold rather than risk default. Sooner or later someone will make a demand that is too great, and then we default.
If our options are 1.) risk default now or 2.) dismantle the policies most important to you and then default. Option 1 is the only sane answer. As I've said before, Obama's greatest error was negotiating in 2011, he opened this pandora's box then by making unilateral concessions. Now he needs to close it for the good of the nation.