Lotso had his chance to be redeemed. All he had to do was press a button.
But do you really think the twisted nihilist toy who created the tiered system at Sunnycide could be swayed by a few words? Repenting would mean admitting that Woody was right and he was wrong, which he is too egotistical and bitter to do.
That's circular reasoning. You're basically saying that because he was portrayed as an irredeemable jerk, that means we couldn't have it any other way.
Lotso was damaged goods, emotionally and psychologically scarred by his supposed abandonment. In the end, his tragic backstory only goes so far as to explain his behaviour but offers no hopes of redemption. Woody, of all toys, should've been able to empathize with Lotso's feelings, but instead of reaching out and helping him through his pain, which would've led to an encouraging moral to the film, Woody makes a token attempt to reason with Lotso but quickly resorts to antagonism in order to turn Big Baby against his master. And having him leave the toys to die in the incinerator was a step too far.
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