I wouldn't say that. It would be demoralizing if Russia retreated and did not continue to attack Ukraine's rear, in addition to not being able to evacuate civilians as happened exactly in Kharkov. This reactive approach by Russia was condemning the Russian military, especially the pro-Russian civilians, and I say that Shoigu and Gerasimov are also partly to blame for this inaction.
Also, no one paid attention, but Surovikin's words refuted one of the biggest claims they had around him, all the media pointed out that he didn't believe in retreat, his recent statements show exactly the opposite, this is great information that was given, if this claim was really proven, something could happen that so far has not happened with the Russian military, having large military units surrounded.
As you said, things changed with the direction of Surovikin, he obviously has greater freedom as in the case of attacks on energy installations that are still going on. But the strategic situation will not change in a few days of command, that takes time, even more with a mobilization in the hands with so many problems.
I don't see how a tactical retreat is a humiliation, especially considering russian military history. I mention the date of June 24, 1812, Napoleon's "Grande Armée" crossed the border into the Russian Empire. The commander-in-chief of the Russian army, Mikhail Barclay de Tolly, wanted to avoid a general battle with the French, preferring to retreat inland. Due to the population's dissatisfaction with these tactics, Emperor Alexander I decided to appoint Kutuzov as commander-in-chief.
Kutuzov, however, was in no hurry to enter the battle and, in general, shared his predecessor's logic: the Grande Armée had to starve. Kutuzov claimed that the Grande Armée would eat its own horses, just as he did the Ottoman forces on the north bank of the Danube when he captured the supply base, forcing the Ottomans to eat their own horses.
The Russians burned Moscow, my friend... when Napoleon arrived in the city, it was still on fire, you know what he said: "It's Scythians." An analogy to describe the Scythians who periodically retreated and attacked the enemy in the face of the overwhelming power of the Persians, with the Persian army being defeated because they never fought a decisive battle.
The Grande Armée was defeated, returning with less than 1/6 of its original strength.
Going back to the present, the Russians seem to have some defensive strategy for the winter, the Russians are digging trenches in Donbas, I saw an enlarged front of several km of trenches being prepared:
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