She seems incredibly selfish. She wants to know all about your feelings and she want you to stay put in your career moves.....without her making any commitments.
Your suggestion about how to respond to her was fine. I even think what you said about since she wasn't making any commitments toward the M that you had to think about your future. Maybe she needs the light shone on her selfishness.
I'm glad she does seem to be slowly coming out of the fog. I hope it will be enough for her to make a solid decision on the M and not keep trying to hop back & forth over the fence.
It is not about what you feel should work in your M. It is about doing the work that gets the right results. Do what works!