It wouldn't surprise me in the least if NK management actually prefers the mass cancelations (to an extent) as an avenue to justify the cancelation of aircraft leases and routes. Seems like it made it easier to pitch their new plan to the owners and the judge.

Is there any sort of precedent for an airline emerging from BK at a 1/3 of its original size?

It is admirable to see people advocating for the furloughed to return, but I don't think it really matters all that much as there won't be much of an airline for them to return to.