Though Batman ended the night losing to Bane, It should be remembered that over the course of Knightfall (the first arc), Batman and Robin together managed to fight off or defeat 15 different super criminals (Mad Hatter, Zatz, Firefly, Amygdala, Poison Ivy, Riddler, Cavalier, Cornelius Shirk, Abattior, Scarecrow, Joker, Killer Croc, Bane's coneys) and all in only a few nights. That is some very impressive heroics.
Then while you revel in it, Bane, I'm sick of death, sick of blood, sick of the chaos and horror you've brought to Gotham - and right into my home. I've spent my life fighting your kind of madness and evil, and now that lifelong fight has brought me to death's door, my own door...I realize you may well be the single greatest source of madness and evil I've ever faced. And in that case? *puts on mask* One more time.
Jean Paul Valley may have lost his mind and the right to wear the cape and cowl, but when he faced off with Bane in his new costume, his crowning moment of awesome came not from beating Bane within an inch of his life. It's when he has Bane at his mercy, the police and Robin watching on in suspense of what he will do. Then Bane finally says, "Kill me, Batman..." (he's spent the entirety of the fight refusing to acknowledge him as Batman).
Valley: ".....NO. You're broken, Bane. Blackgate Prison can hold the pieces."
When Bruce Wayne completes his training and puts the suit back on in preparation for fighting his replacement, a swarm of bats bursts into Bane's cell.
Bane: "He has returned..."
Despite being a villain, Bane gets one massive CMOA with his plan to break the Bat. He successfully runs Batman ragged, deduces his identity, and is waiting in Wayne Manor when the weary Dark Knight returns for some rest. Finally, in a single act, Bane lands a blow against Batman that has never been matched in the almost twenty years since.
Bane: I am Bane— And I could kill you... but death would only end your agony— and silence your shame. Instead, I will simply... BREAK YOU! Broken... and done.
When it appears that Bruce has been killed by a trap left by Valley, Nightwing totally goes berserk on him, hitting Valley hard enough to split his gloves open. While Valley beats him, it was a hell of a fight.
Nightwing: You'd have to stand on top of Gotham Tower just to reach his BOOTS! You didn't best him! You MURDERED him! Now I'm gonna peel that tinsuit off you and AIR YOU OUT!!!
In the final confrontation between Bruce Wayne and Jean Paul Valley, Bruce proves why he truly is the Batman: a simple knock-down drag-out brawl proves inconclusive, so Bruce instead beats Jean Paul psychologically, forcing him into a psychotic break...and then, showing compassion to his defeated foe. It pretty much illustrates what makes Batman Batman. If he can't outfight someone, he'll outthink them. And to those who truly deserve mercy, he has it to give.
Before the above defeat Batman, who was supposed to be dead for about an issue, confronts Valley in his own mansion and is poised exactly as Bane had in the issue before his broken back.