I think they knew.
I think they were sick of each other. And likely knew that some time off was going to be the next move, and no real guarantee they would crack it back up again.
Still think they should have played Woodstock '94.
Woodstock '94 would've been a nice cap to their '90s career. Could've played a couple of TSI songs or a rarity or two. And it would've been at a big gig on their home turf. You know, they were invited to an event celebrating Elvis in 1994, but they declined because they didn't know what song to play.
Also, Axl apparently told Matt that he'd "see [him] in '96". Axl was planning on taking three years off. This is confirmed by Axl saying, in his January 1994 interview, that they were aiming at having the next GN'R record out in 1996. Also, back in early 1991, he said the plan was to get all the material out there and then sit back "for five years" and think about what they were going to do next.
Had history proceeded as it should've/was planned, GN'R would've had some sort of record out sometime in 1996.