It's an opening offer to start a negotiation.
They're supposed to make a counteroffer for full citizenship for DACA recipients. This is be too much.
Then they sit down and hammer out a compromise. Permanent legal residency sounds about right.
But the Dems won't play ball. They real propose of this dance is to show the normies that the Dems are not sincere. They are obstructionist and the enemies of the American people (and the DACA recipients, as they will see). Then Trump pulls the national emergency lever and is seen as a hero for bypassing the Dems. And whoever is still following the Dems will see that their parties own recalcitrance cost them a solution to DACA.