Revise and resubmit. This decision from journals has recently been discussed on the New APPS blog, and Peter Gratton has responded here. Here is my take on this – this refers to no specific case, but is the product of six years as an editor, and more as an author, referee and board member:

Yes, revise and resubmit is usually a good thing; and certainly not a moment to despair. It is not a reject, but nor is it an accept, however conditional. You are being given a chance, with guidance on what to do. If that guidance isn’t clear – ask for clearer guidance from the editor.

It is not sensible to argue with an editor that has given you a ‘revise and resubmit’ decision, seeking to get them to turn it into an ‘accept with revisions’ decision. You as author don’t know the whole picture, the identities…