My view....
Dylan won't back down or resile from his positions, regardless of how ridiculous he looks. He has all of his work, prestige, credibility, fan club, and energy tied up in this...no matter how this comes out.
If he yields, he'll be hated by his own supporters and ridiculed by his former opponents. The people he's offended and insulted over the past few years will not accept his apology. His supporters will be enraged, and mark him down as having sold out to the government. Or been a shill all along.
At the same time, he also must know that very few people believe his rubbish any more, and that he's surrounded himself with some of the most disreputable people and dregs of humanity as allies...cranks, looney tunes, nutters, neo-Nazis, and so on. He's now being held by his opponents to a higher standard than his first film -- whose errors could be written off as the work of a 22-year-old kid -- and any mistakes, errors, unsubstantiated allegations, or other nuttery will only result in more opprobrium.
He has nowhere to go. He is so far in sin, he cannot pluck it out, as Shakespeare wrote.
My hunch, which could easily be wrong, is that he'll be like that mad mullah in Burma, who claimed he could fly -- but never actually chose to. Burmese kept flocking to his events and pouring money in his coppers, and he'd promise next week to fly...and every week find some excuse not to.
The excuse, of course, will not be his fault. It'll be the New World Order, Gravy, the FBI, the movie studios to blame. Anyone but himself.