When Regina mumbled to herself I think she meant ‘we’ve gone too far’ as in they had gone too far into the forest and ran into the dead villagers that she forgot would be there.
I think that Regina was genuine about wanting to be a family again too, up till then I don’t think she ever considered Snow White would want to forgive her but when she realized she could make amends and be good again she really wanted to, but then they saw the dead bodies and Snow started slating her… that would be enough to push someone like Regina over the edge and back into her evil ways!