Ouch, that hurt. But it's a brilliant character piece for both guys, and I hope that sooner or later they'll figure out each other's thoughts and feelings in canon. *smishes them both*

As joy2190 said, the crux of the matter is Peter describing Neal as unredeemed and unrepentant (and both being very true!), and yes, until Neal is repentant, he will never be redeemed. As it's now canon that he does not feel guilt or remorse, he's never going to be redeemed (and I doubt he wants to be, tbh).

Also? Neal was committed only to the idea of Peter Burke, not to justice or the law. Exactly!!! Hence the justifications and lack of guilt and remorse.

Oh boys.