Some miners just admitted that the true reason they don't want segwit is that they are scared of losing transaction fees. That is understandable. So unlimited was just a red herring and they had no intention to hard fork. They tried to use unlimited as a way to reach their goal.

What should we do? Since they endorsed unlimited we should start preparing an alternative POW.

Not to use it, simply as a deterrent. During the Cold War US had missiles pointed at Russia and Russia had missiles pointed at US. There was a threat of mutual destruction. That has proven to be a very effective way to maintain peace.

If we prepare an alternative POW suddenly they would stop pushing for unlimited and both parties win.