I think you have explained it beautifully and correctly. Burning Karma in my understanding usually means the surrender to difficulty with equanimity, understanding that the negativity encountered in the world is a karmic debt that must be paid off. In our work, we take it a step further and recognize that if we release the inner negativity through meditative processing, we no longer have the need to attract difficult experiences in the outer world. With regard to the revenge, your thoughts are correct - if one party no longer blames and seeks revenge, they are released from the bond with the other, and the other will then have to work out the negative energy in other ways, by attracting other conflict, for example.