If Ukraine had ceded Bakhmut, they'd have to retake it at some point. Taking ground is harder than holding it, especially against a prepared defense. Which we're seeing in the ongoing counteroffensive.

I don't see you proposing an alternative to what the Ukrainians have chosen to do that doesn't leave them with a lot more territory to retake, or ceding a bunch of territory to Russia on a basically permanent basis.

And let's not forget that they're doing their damnedest to attrit Russian materiel all the while they've been fighting to hold or retake territory. Every weapon system they've been given to strike behind Russian lines and destroy materiel, they've used for that purpose. That both reduces Russia's availability materiel, and screws with their logistics by pushing back their various assets and supply depots.