I think the song is about how Joni recognizes a similar attitude in the Coyote that she used to have herself about love. She knows the Coyote has a "woman at home," and it's evidently on a ranch as mentioned early in the song, but he is on a journey away from home now where he is sleeping around a lot, including with her, and that it's because he hasn't dealt with his relationship at home correctly, and thus is out trying to prove something to himself on the road with other women due to his ego. That's why she says, "Either he's going to have to stand and fight, Or take off out of here, I tried to run away myself, To run away and wrestle with my ego." He is going to have to "stand and fight" with his ego and return to his relationship at home and conduct himself with full integrity toward his woman at home, rather than "run away" and get his nose out of joint due to his ego and go off on the road with other woman to prove something. She isn't judging him about his current state, having been there herself in the past, but shows him his two choices: fight for his relationship at home by working on his ego, or keep running away from the fact that he hasn't dealt with his ego by staying on the road and sleeping around (in which case he will be a different kind of "prisoner" than he (wrongly) deemed himself at home).
I think the song is about how Joni recognizes a similar attitude in the Coyote that she used to have herself about love. She knows the Coyote has a "woman at home," and it's evidently on a ranch as mentioned early in the song, but he is on a journey away from home now where he is sleeping around a lot, including with her, and that it's because he hasn't dealt with his relationship at home correctly, and thus is out trying to prove something to himself on the road with other women due to his ego. That's why she says, "Either he's going to have to stand and fight, Or take off out of here, I tried to run away myself, To run away and wrestle with my ego." He is going to have to "stand and fight" with his ego and return to his relationship at home and conduct himself with full integrity toward his woman at home, rather than "run away" and get his nose out of joint due to his ego and go off on the road with other woman to prove something. She isn't judging him about his current state, having been there herself in the past, but shows him his two choices: fight for his relationship at home by working on his ego, or keep running away from the fact that he hasn't dealt with his ego by staying on the road and sleeping around (in which case he will be a different kind of "prisoner" than he (wrongly) deemed himself at home).