This is endorsed and approved by Beijing, she already declared the bill dead this is just a matter of wording. Legally it can be brought back as laws are always evolving and Hong Kong needs an extradition treaty with other jurisdiction including another system in its own country.
For Mainland Chinese citizen the narrative will be altered, but will still be seen as symbolic defeat and for Hong Kong Chinese citizens it will be a symbolic win.
As it is said in order to win larger battle one needs to lose smaller one, extradition bill was already dead, now it's withdrawn until it's introduced by someone else later. In larger picture it will be sacrificing pawn.
If the violent protest continue, then it will be seen as challenging one country two system as the Hong Kong CEO proclaimed in her pre-recorded message. She is just saying in an indirect way this is her last ditch effort to salvage the situation.
Hope this brings down the tempers and hopefully this put an end to violent protests, which has destroyed city and society. Violence can never be a solution, only peaceful non-violent struggle can bring about real change.