Lee intended to fight at the passes above Cashtown. The Union army would not have its advantage of superior numbers there and the Confederate army would have the advantage of terrain. I still think that Lee could have salvaged the day by evacuating his wounded, since he held the Battlefield of the 1st day, and then burned Gettysburg to the ground while the yankee army looked on from Cemetery ridge and he withdrew back to the Cashtown passes.

It would have created a public outcry from the northern people, particularly those in Pennsylvania, for the Union army to follow, defending Washington be damned, while Lee concentrated in the pass. That would have been a meatgrinder with the Confederates in control of the high ground. It would have been worst than Fredericksburg.