Kanako shows up like "hey. we're putting a shrine on top of your mountain"

Tengu: "You can't, do that, that's ours"

Kanako: "OK then I'll fight your entire military and win"

then she does, sets up the shrine, and takes no further hostile action

the tengu are clearly very mad that the moriya shrine is there now but they can't really do anything about it

kanako: asserts dominance, refuses to elaborate, refuses to leave

so they're just watching like hawks

The politics of Gensokyo are surprisingly complex

There’s a LOT going on between various youkai factions that humans only rarely find out about

the foundational truth of gensokyo is layered

1. All youkai factions have agreed not to touch the human village because it's to all their benefit for it to exist

2. That's the rules of the game but every faction is trying to find ways to cheat

Youkai Hunters like Reimu and Marisa are even in on it, sort of

even the side manga like lotus eaters and forbidden scrollery are part of the game

youkai sneakily setting up shop among humans

Gensokyo requires human fear and awe to function but it needs those humans to also be kept safe

So the human village is INCREDIBLY safe, but thanks to flashy spellcard battles going on all the time, the humans think their safety is much more precarious than it actually is

Akyuu says that while it's true that some youkai are friendly and can cooperate with humans

"youkai are enemies of humanity" must be humanity's truth

because if the human village stops believing that, gensokyo collapses

yeah, human-presenting youkai and/or half-youkai (Keine, Rinnosuke) and/or youkai-sympathizing humans (Reimu and Marisa despite what they might say) in particular are just, basically the means with which the proverbial Masquerade is upheld

reimu in particular has to walk a tightrope (though she doesn't realize it, so she does it effortlessly, as she do) in that she's got to keep making youkai appear threatening while also keeping them from pushing too far and actually being a danger to the stability of the world

Yukari basically calls this out at the end of Forbidden Scrollery

that Reimu's actual job is to preserve balance between humans and youkai