It's worth noting that the thing about pups went "not many awakening any more" to "the waiting list is long". That doesn't suggest authoritarianism to me so much as a strict scarcity of children to be raised, potentially paired with a biological incapability for the average member of the society to have children themselves. What's interesting is that skipping the line for kids is also associated with having a place in "the city", which probably is a factor in why we don't see kids around. For whatever reason, a pack having a pup is associated with living in the city.
There's a lot of interesting tidbits in this update.
Resources:
Hauls of what I'm going to call Spirit Slugs are in a slump which has lasted multiple years. When refined through a spiritually powerful (exact scope unclear, but implied to be late Green equivalent or more likely Cyan+) furnace, it becomes a substance highly reminiscent of the physical impurity human cultivators expel from their body as they increase in stages. We know this resource is important to the Shishigui, but we don't know exactly what it is used for. Cultivation seems likely to be among its uses. They believe fertilizing the tar river can increase yields, which apparently involves dumping corpses into it.
Pup "awakenings" are down, and the population is shrinking. From the mindless Shishigui we've seen in the past, we can assume that not all members of the species are sapient. In context, "awakening" likely refers to the process by which they attain human-like intelligence, at which point they are considered a "pup". It's not clear if this can happen at any age, or if it's a "by this level of maturity or never" kind of situation. We do not know whether the reduction in awakenings is linked to the reduced Spirit Slug hauls, or if it's a separate issue. We do not know if awakenings can be or are induced, or if it's a natural process that mostly can't be affected. It's also not clear whether the shrinking population considers the mindless variety or not. Finally, we don't know where the mindless variety comes from in the first place.
Cultivation:
Shishigui appear to start out in and plateau at the first realm naturally, though it is unclear what winnowing process applies to the young that results at an all-cultivator society, if any. Higher cultivation appears to reduce lifespan, which appears to naturally be significantly longer than one century. Advancing in cultivation is related to "meldings". Reaching the same cultivation as Caretakers, which are likely the herders we've seen and are all 3rd realm equivalent, takes "a couple meldings" which may make the term equivalent to our realm breakthroughs. It's not clear what the process entails, what resources it uses, how long it takes, or how many meldings a Shishigui can undergo in a short span of time.
Ultimately, the Shishigui's capacity to field cultivators is difficult to estimate despite the local downturn in productivity.
Society:
As of yet, the local social organization appears relatively non-hierarchical. Higher cultivators appear to command less authority compared to human society, potentially due to the sacrifice of lifespan inherent to their system of cultivation. "Packs" are a unit of social organization; it isn't clear if these are family units, something more like breed, caste, or trade divisions, or all of the above. The scrawny and burly specimens we overheard weren't packmates, but their differences in physique could be coincidental. We don't know where pups come from, but packs are on a waiting list to receive them. Military service, at least to the surface, is on a voluntary basis and this potentially extends to roles requiring higher cultivation in general.
Multiple mentions of "the city" as somewhere that is preferable to live and that representatives are sent to. Representatives seem to hold the station temporarily, a year being the given timeframe here- not clear if it is for a full year or for a yearly conference of some kind. The city evidently has great influence or authority over at least some aspects of how this settlement is run, either directly or indirectly. The fact that they are asking for volunteers and offering enticements would seem to suggest the latter, but skipping people to the front of the pup list could suggest otherwise- needs more context. It's not clear if the city has formal authority or emergent authority as an industrial and/or administrative hub. The structure of governance in the city is also not clear.
Conclusion:
They socialists, yo. I mean, maybe. Hard to say. Some pretty interesting standouts that mirror some schools of socialist thought though.
Also, I agree with the analysis of a previous poster that attacking this struggling town seems likely to spike their military volunteer rate super hard, even as it causes members of their populace to be furious with those on their side who pushed for involvement with the surface in the first place. It's not like they have any open dialogue with us, or that they're capable of realistically resettling their lives to avoid the fact that they're a close settlement to us.
When we're deciding on what target to hit, one of the things we should weigh is to what degree we're instilling the population with a sense of existential urgency. Might be best to stick to as purely military targets as possible in that regard, especially since testing their military defences is something of our purpose. Of course, there's still a cultural divide here, if we attacked the fort and crippled their defenders who had already sacrificed years of their life to serve as the community's guardians in the first place, it's possible that the general public would find that just as harsh a blow to sentimentality as if we blew up a daycare or something.
Edit: Thinking about it, causing a lot of casualties in the place they're more likely to have that "convert corpses to shoggoth" powder might not be the most tactically sound approach, heh.