Are we dumb for walking away from a contract because the seller won’t agree to our repair requests?

Details: List price $290k we offered $280k with a $5k due diligence and they accepted. We got a standard inspection for $600 and that revealed some minor cosmetic issues, some somewhat serious rotting of the back deck, and some serious hvac issues. The house has two gas furnaces (both 40 years old) and two AC units (one 40 years one 20 years old). One of the AC/furnace is for downstairs one for upstairs. We then got a hvac specialist to come out and do a more detailed inspection which was another $250. The second inspection found a cracked heat exchanger on the furnace and a cracked condenser coil on the AC, leaking out gas and coolant (respectively). The furnace was red tagged and reported to the county. We then got some estimates. The sellers got one and we got three for the hvac and we got one for the deck. Cheapest hvac estimate is $10k highest is $40k. Deck repairs came in at around $5k.

We put in a repair request for $10k credit at closing. That will give us enough to replace the 2 broken units. We’ll still need to save for when the other 2 break and we’ll have to repair the deck on our own but that’s fine. They came back and said they’d give us $2k. We told our agent to tell their agent that we are walking and terminating the contract if they can’t meet us higher than that. We’ve already started looking at new listings.

Are we dumb for letting $8k stop all of our plans? We were closing on 6/28. We’re losing the $5k in due diligence, we’ve already put over $1k in inspections, and we’ve bought a new fridge and washer/dryer that’s supposed to be delivered 6/29 (we wanted to get the Memorial Day sales). One side of me thinks it’s dumb to let $8k stand in the way of a $280k purchase. The other side of me thinks it’s dumb for the sellers to let that $8k stand in the way of them making a sale. They’ve already retired and moved to the beach, they’re paying 2 mortgages, and they expressed a strong desire to not want to relist it. It’s shitty because if we take the $2k then we’re forking over another $8k right out of the gate to fix the units. But if we walk away, they made $5k, can repair one of the units, relist it for more, and like… we literally just paid for a random person to repair their furnace for no reason lol.