It started out well but almost as soon as you committed to each other, troubles emerged and never stopped, with
cycles of push and pull. Some have referred to it as a dysfunctional dance, one approaches and the other pushes away, then when one draws back the other pulls together.
Sadly, this is a common experience reported here. As much as you figure there must have been ways to have everything gone smoother, the reality is that the discord was, more or less, unavoidable.
Am I crazy for thinking this could have worked?
Well, you did try. But you're dealing with some level of mental illness, perhaps minor and not too severe, but something's there nonetheless. It's good that she's in therapy. How much it will help her, hard to say. Meaningful therapy often takes time to have noticeable effect, if it ever does have effect.
One thought to remember is that you need to make decisions for yourself based on what
is, not what you wish or hope.
You too can seek local in-person counseling, to hear objective perspectives, just as we here in peer support offer.