I see. Espen180's drawing makes it more clear to me what 01030312 presumably had in mind.
OK, to connect that to what I was saying, imagine a highly elliptical orbit instead of a circular one. This is essentially the case that Taylor and Wheeler talk about (although they phrase it in terms of Atlas taking two planets and moving them in and out as if he's working out in the gym). As the planets are approaching one another, each one feels a retarded force that is weaker than it "should" be according to Newton, so the amount of positive work done on each is smaller than the Newtonian value. As they recede from one another, the retarded force is smaller than the Newtonian value, so the negative work is greater than Newtonian. The result is that with each cycle, they lose energy. If we assume that energy should be conserved, then the only possible way of resolving the problem is to assume that this energy is radiated away as gravitational waves. So the retarding effect is not a countervailing effect that partially cancels the gravitational radiation, it *is* the effect of the gravitational radiation.
In the circular orbit case, each planet is doing positive work on the other, so by the work-kinetic energy theorem, they're gaining kinetic energy. But remember that when a non-contact force does acts on a particle, \int F\cdot dr, where r is the position of the object being acted on, doesn't give the change in the object's energy, it just gives the change in the object's *kinetic* energy. Each planet gains KE. As they gain KE, they remain in circular orbits, and the only way that can happen is if the radius of the orbit decreases. This leads to a loss of PE that is twice as big as the loss in KE, so over all, there is a loss of energy in the system. This is exactly what we observe in, e.g., the Hulse-Taylor system: the period is shortening over time. So again we have loss of energy from the system, the energy loss is accounted for by gravitational radiation, and there is only one effect, not two.
BTW, there is nothing in any of this that is specific to GR. Every argument that we've made in this thread applies equally to electromagnetism. We know how the analysis turns out in E&M, so it should be clear that it turns out the same way in GR.