Thats one way of reading it.
But I have to take issue with your citation of 1989 as pivotal moment. It may have been, but not for the reasons you imply.
After '79 there were three leaders primarily responsible for the neo-liberalization of the modern world. Thatcher, Reagan and Deng.
June '89 came along shortly after Fukuyama's "End of History" thesis (written in April '89) and shortly before the fall of the Soviet Bloc, predicated by Gorbachev's persestroika and glasnost reforms.
But the events of Tiananmen were not pro-democracy in the sense there was no overarching demand for electoral reform. Deng's government were being criticized by various groups (fractured rather than a unified movement, with different groups campaigning for differing interests) for the rampant cronyism and "undemocratic" redistribution of state-owned assets through privatization. Mainly it was about corruption within the ranks of the party and the main voice was a call for a slowing down of the pace of reform.
Tiananmen is hugely misunderstood. That Deng managed to hold on to power through the use of state violence was tragic, and is not in dispute. But this was massively beneficial to the powers that be in the west who were then able to continue outsourcing to China and also to use cheaply made goods to boost consumption in the developed economies. Had the TAM protests been successful, the reform & opening -up policies would have been slowed down substantially, perhaps even stopped altogether with a more socialist agenda being adopted.
I think the fact that so few Chinese bothered with these protest calls can be interpreted in a variety of different ways depending on your own beliefs. Most in the west will view it as evidence the the CCP is so feared, people will not dare oppose them. This is too simplistic and shows a lack of knowledge about the country.
Secondly, you could interpret it as a sign of apathy. Yet I believe the Chinese are anything but apathetic, certainly when it comes to the development and continued strengthening of their own country.
Thirdly, it could be attributed to pragmatism. This I think is most likely, but it is also nuanced. Middle-class are too busy taking advantage of the opportunities presented to them by the current system. They would not benefit from change at the top. However, those disenfranchised aren't really concerned with replacing the CCP. Had it been a protest for salary increases or tighter property controls or social security for migrant worker and other issues, you may have seen an altogether different response.
Finally, it needs to be restated that China has gone through huge political transformation since 1989. Politically, China is a totally different animal. Smarter, more agile and more determined. The CCP has ditched strong-man politics in favour of consensus-building. But it will continue to use a gradual system of reform. Why should the government be criticized for doing everything in its power to avoid bloody protests?