I love the extended apology, though I think it more appropriate for older kids. We sort of sum this up in our discussion of the event, but I do like the idea of having the kids say it.
I'm fine with 'it's ok' - I actually teach them to say this, as in , 'things are now ok between us since we discussed and you apologized' or, in other words, I forgive you. I think it's a perfectly developmentally appropriate way to accept an apology and agree to move on.

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