Better to have a public blowup and bad feelings now than later, and it looks like you were heading towards having it later, when both you and your book would have suffered more.
I don't think there was a "good" end to this, Daisy. Not an end where everyone felt warm and fuzzy and generous to each other. I think this was going to be messy, and you got it over more quickly and with less fallout for you this way.
While this is true, I want to add another voice to the chorus telling you that you didn't blow this up - she did. She is essentially leaving you at the most important moment and trying to make your career harder. I know it's scary - really scary - jumping back into the query trenches, my instinct tells me it's worth it, simply due to how deliberately vague (if not downright disingenuous), she's been.