>>33769943Zuko's been living in the city for days by that point. He knows what he's talking about.
You're forgetting that the Fire Nation still has a very strong standing army. If Zuko yields, his image as a strong leader in the fire nation would be severely harmed, and I guarantee there are still plenty of people, especially in the military, that prefer Ozai/Azula over Zuko as leader and are very capable of arranging a coup. By being stubborn in his convictions, in a roundabout fashion, he's helping to prevent another war from happening. On the other hand, by not yielding, he's giving off the image that the Fire Nation won't fulfill it's promises, which may also spark another conflict.
Like I said, it's a very delicate political situation.