I don’t think that is what it means, if we are to understand this interview as correctly displaying what the current “negotiations” are looking like. Take this quote from the interview (or rather, from the article which is summarizing it):
What do you make of that?
You may not think that is what it means - but I will repeat what I have said already - 40 years, and how many times have we heard similar statements?
I think part of the problem is that you are focusing on one or two discussions Fellay and Francis have had.
But let’s get to how the Church works; reconciliation is not going to be a work between Fellay and Francis. It is going to be a work between the CDF and the SSPX, and last I checked, Cardinal Muller was still the head of the CDF. It might be that Fellay may think he can manipulate Francis to move contrary to the CDF; but I would hope that Fellay is smarter than that. He has been a bishop for enough decades to know how Rome works.
There is questioning about documents (e.g. V2); then there is the issue that if Rome has given an answer - and if John Paul was not clear enough, Benedict certainly was - that settles questions.
And last I checked, the SSPX have not accepted Benedict’s answer to their questions.
If one looks at history where groups have taken off and challenged the truth which the Church teaches, and looks at the resolutions of those challenges, then one can be fairly comfortable saying that some of the SSPX will never reconcile.
And looking at the history, one could surmise that the group (as opposed to a few individuals here and there) will end up as other groups have ended up: in schism.
The SSPX are not in juridical schism - that is, they have not been declared in schism. And I doubt they will be declared so during this papacy; like Benedict, Francis wants to see reconciliation. But wanting it and obtaining it are two completely different things.
And as to the issue of schism, Cardinal Muller (remember him? - head of the CDF) stated publicly several years ago that they are in practical schism. That means in plain language, that they are separated from the Church just as other schismatic groups are, but that for the grace of the Church (and in large part, the last four major papacies, including Paul 6th, they have not been declared so.
His statements have never been retracted, nor has he been corrected by either Benedict or Francis.
So I don’t pay much attention to what Bishop Fellay has to say. I pay attention to what the CDF says, because that is where things are going to get worked out. And the CDF hasn’t had a whole lot to say about this last go around.