Wow.  Call me conflicted.  The initial thought was that Tara was correct.  But that does not work with a demon.

Oh, so sad. I can just see Tara trying to help this way, and accidentally stumbling into a situation she doesn't understand.

Another excellent capture of that awful season.  Poor Spike. Poor Tara.

Absolutely spot-on for characterization. I love the bone-dry irony of it: two people with tremendous personal insights, except that what each realizes can't be of the slightest use to the other, given what experience has made them.