Here's a thought that troubles me. If you've captured a stubborn, very-difficult-to-break rebel leader and you want to make him recant, confess his crimes, betray the hideout of his comrades who are still free, etc., and if you've also captured his family, won't you use them to blackmail him?
What if brainwashing wasn't attempted right away? What if the Federation threatened to kill Blake's brother and sister (preferably in some painful and prolongued manner), unless Blake betrayed the resistance? And what did he say to that? Shudder.
I don't like this idea at all, but it could be a possible explanation for The Wrong Lie. Such a memory would be very difficult to erase, unless you replace it by something else.
N.