If they don't completely curb stomp Ukronazis now, I don't even know at this point

this tiny little drone could have done any damage

There's plenty of footage, both Russian and Ukrainian, of teeny tiny copters butchering whole squads of soldiers with a single grenade drop. And this one isn't even that tiny

Rash escalation would indeed be a mistake. Provocations like this happen because the trajectory on the actual battlefield is not going the way that Ukraine's western handlers were hoping. It is an attempt to make Russia make emotionally motivated changes to their strategy.

The thing to focus on now is the defeat of the upcoming "counter-offensive": https://bmanalysis.substack.com/p/operational-update-4

This doesn't mean that another wave of large scale missile strikes/bombings is out of the question, and Russia may well choose to claim that these are retaliation for the terrorist act, but they will hit meaningful military targets like concentrations of troops, equipment and logistics hubs.

As for the "talks" between Kiev and Beijing, if they can even be called that, they are a formality, nothing more. No one expects anything to come of such initiatives because Kiev are in no position to negotiate or be negotiated with. The ones making the decisions sit in Washington and Brussels. They are the ones who will eventually sit down at the negotiating table with Russia, mediated by China.

Ukraine and Ukrainians are not the enemy in this war. Sure the Banderite Nazis are, but they are a minority that have taken the rest of the country hostage. The real enemy that Russia is fighting here is NATO. The goal is to defeat their proxy army and deplete the collective West's military and economic resources without completely devastating Ukraine.

The West would like nothing better than for Russia to completely eradicate everything in Ukraine. On their tally every dead Ukrainian is just as much a victory for them as a dead Russian. They know that at the end of the day, when this conflict is over, Ukraine and Russia will still remain brotherly peoples, no amount of Banderite propaganda can change that reality of kinship and historical cultural closeness.

This is why Russia needs to keep a cool head and respond to provocations like this only with actions that advance the overall military and geopolitical goal. If the grain deal no longer benefits Russia, it will be cancelled, but by that point it will be clear that its failure will have been entirely to blame on the West and their puppet regime in Kiev being dishonest actors and not abiding by its provisions.

Same goes for whatever deals are still in place for oil and gas. Let the Europeans commit suicide by continuing to sanction themselves out of a supply of oil and gas, that way it will be clear to the entire world who is a reliable business partner and who is not.