Personally, if I was the EU, I'd see the
game slightly differently.
Yes all sides will be hurt from a No Deal, but temporary measures can be enforced in NI to prevent war, which is the actual real concern. Further to that, showing that if you leave the EU you'll be worse off, sends a strong message. I read (but can't find) that the Italian polls for leaving the EU swung out of being in-favour since Brexit has gone so poorly (citation needed). Not only that, but after a No-Deal the EU would be in a very strong position to offer UK back into the EU after a couple of years, with the proviso being that we adopt the Euro and we loose any veto status we have/had. If I was the EU, this would be my goal, shore up the Euro off the back of another country with a history of a strong economy.
While the EU will loose out on a no-deal, it will not be the biggest looser and in the short term can gut us for temporary trade deals on food etc... all the while building to the long term gain.
But I'm far more pessimistic about this cluster **** than you are