Something next to normal, that's the thing I'd like to try

It seemed to me more like Angel was in denial, because he'd devoted the last year of his life to this Twilight scheme and would rather turn his back on the downside of it (literally) than admit he was wrong. But in the face of Buffy's adamant insistence on doing what she thinks is right, Angel ruefully reaches the realisation that in fact, he's been a bit of a plonker, and decides to do it her way after all.