Yes, he literally knows he brought it on himself. That's what he literally said, "I screwed up." That's what that means. He wasn't saying otherwise. Idk what you're so mad about.
On another note, yeah, this arc is widely regarded as the best arc in the series. Most of the series is definitely like you said, wholesome slice of life with comedy and a sprinkle of action, but then we got this arc which ups the action by a lot with the Yor assassin focus.