It's ok if you disagree with my view on wagner - that's why we have these discussions. Some may view her position more optimistically and that's fine.
Wagner is, what, 25 now? Or 26...mid-20s, anyway. What I mean by "giving up" is this - and it is tied to the "resolve" issue. She isn't getting any younger. The sport isn't getting any easier. Her (international) competition continues to heat up. What exactly does she want to get out of this next season? For example, if she wants an Olympic medal, she's gonna have to do a WHOLE lot better than she has this season, and even leading up to her 2016 moment. And that may require of her an incredible effort that her body may or may not be up for. And physical issues aside, she'll have to gain some mental fortitude as well. Alternatively, if she wants to just make it to another Olympics, she'll still have to work hard but she may not have to push her physical limits quite as far. She's still comfortably one of the top contenders in the US but she cannot fully count on it (as she learned in 2014). Finally, if she just wants to continue competing, and doesn't care too much if she misses out on the Games, then she can more or less maintain the status quo. Different levels of commitment for each goal - and of course, there is never a guarantee of a result even if the work has been put in. It's up to her what she wants to do, and whether she can be at peace with herself no matter what the outcome is or where the chips fall.
As for the question of whether she can bounce back from this season, as she is nearing the end of her career, I'd ask how she wants to go out - how she wants to be remembered. Can she use that as motivation to rise to new heights - or will the pressure be too much and weigh her down? We just don't know yet. She has what I see to be a mixed track record in this regard, and this is where predictions come in - which each skate fan approaches from his/her perspective.