Yup, I think Rachel was basically saying, "Well, if that's how you feel then I can't be your wife", because in reality he gave her no other choice but to say that or to back down and accept all responsibility. And I don't really think her response is what he wanted her to say but at that point he was just being spiteful and saving face by saying "OK". He had gotten himself too far out on a limb to understand or care about the consequences at that point, but her response made him have to deal with them. And good for her!
I personally don't think these two are over yet. He will probably