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Lance being the choice for 'authority figure Cynthia can talk back to" worked rather well honestly. May not fit his other portrayals perfectl;y but it fits with his position in the world.

I have been DESPERATELY trying to figure out how Red can prevent the escape andkeep messing up somehow. It's always Shawn and Muk (no, I will not dignify it with the name). Similarly, I'm trying to figure out if there's a way to beat Betsy yourself. Does the TM choice matter at all?

On the subject of Red doing other stuff, I actually was almost epextcing Lugia to show up, considering what the dex says about it and storms and Red coming in to help with that. 

Also, while I still have yet to get her to appear, I appreciate the Dawn references I've seen others mention (and Cynthia's own lines that reference A New Dawn's Ending). I adore that VN so much (not the least reason of which being my love for Dawn) so the easter eggs are very welcome.

As of the current version of the game, Red is basically the backup. If the player gets to the end of the showdown with Betsy without meeting Shawn on a prior day, Red shows up.

You can beat Betsy by yourself. One of the prerequisites is to evolve your pokemon but the TM choice doesn't really affect anything. I'm probably going to rewrite this a little because the only move that matters is Rock Slide and you get that move no matter what. It's kind of a fake choice, which I don't like.