Sure it does. You give an inch in the hopes that people won't take a mile. I think people are generally more compliant when they feel they're getting something out of it.
Ultimately, the government is between a rock and a hard place. I think a lot of common sense people would be quite shocked at just how aggressive the pushback would be against more draconian measures over Christmas. You think we wouldn't have mass protests against a full Christmas lockdown were one to be announced? You think everyone would comply?
Your bad press scenario is easily avoided by simply giving instructions, privately, to not enforce certain offences over Christmas.