The book that page is referencing specifically says "Although victorious, the Imperial armies were in no shape to continue the war" which sounds a bit worse than "bloodied" to me. Now, what it comes down to is how what forces remained throughout the Empire compared to what forces remained in the Dominion, but if that book is at least a little trustworthy it seems fair to say neither side was doing great (which does make it a reasonable time to negotiate, even if the outcome seems odd to me).