No, theres a bit more to it than that. It should always terminate with
a "pseudo-normal" form for any phase-free diagram. I say "should"
because its not implemented in a particularly efficient way so it
chokes on bigger graphs. The idea is that the "rotate" rule can always
be used to reduce the arity of an "interior" green spider (i.e. a
spider which is not connected to a boundary). Once the arity goes to
1, it can be eliminated by means of a copy rule. A "pseudo-normal"
form is a diagram that has no interior green spiders. They are not
unique, and are in fact in 1-to-1 correspondence with sets of binary
vectors. Two pseudo-normal forms are equal when they span the same
subspace. These subspaces are finite, so you can get an "honest"
normal form by blowing them up to the whole subspace, but this isn't
practical in general.
Here's an unpublished note about this worked out by Pawel & I a couple
of years ago:
http://www.cs.ru.nl/A.Kissinger/papers/phase-free-nf.pdf
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