One of the things that makes the family conflict in Lilo & Stitch work narratively is that Cobra is correct in that Lilo and Nani's current situation is non-sustainable. And yes, Nani is not prepared to handle everything by herself. But losing the custody is not the solution either, and to a degree Cobra seems to believe the same (he legit does not want that to happen), but if Nani can't solve the problem, then from his perspective it's the least harmful solution.
And the conflict is solved because what Lilo and Nani need (what they REALLY needed) is a support net. Someone, anyone to be there to take at least SOME of the burden from Nani and give her breathing room.
Which is why Jumba and Peakley joining the family alongside Stitch, and become a constant pressence who share the burden of the household, makes all the difference.
And this does not solve all the problems, because the movie is not about magically resolving those problems, it's about putting the characters in a situation in which they can move forward as a family. And for their desire to be a family and be together as a family, to be respected.
Anyway, someone told me what the remake did for the ending














