Does it strike anyone else as weird that the Empire has been back for less then a year, and they’re already ready for the games? A massive overhaul of the Empire’s infrastructure and bureaucratic systems would be necessary to accommodate the huge influx of visitors. Does the Crystal Empire have hotels to hold all the guests that will be coming to watch the games? Do they have stadiums to hold the events in? Do they have any kind of large scale food to sate the visitor’s hunger, seeing as they were literally being feed slave rations up until now. Do Crystal Ponies even know what most of the games actually are?
There is a stadium at least. We saw it in “Games Ponies Play”. No on everything else, AFAIK.
I just realized, the Games have also been held in Cloudsdale, a venue which by definition shuts out at least 2/3 of the Equestrian populace. So I doubt the organizers care about things like accommodation.
ANYWAY… Yeah I was just thinking about this yesterday. A thousand years ago, before the whole place got time-shifted, Celestia heavily implied that the Crystal Empire was independent. It’s not exactly clear what its official status is now, but it is clear that the current leaders have spent their entire lives loyal to Celestia and have no reason to not be so now. So… yes; until and unless Cadance is shown to make a decision counter to Celestia’s interests, we can assume the Crystal Empire has become merely a puppet state. (and if Cadance does, will Celestia overthrow her too?)
I headcanon that Cloudsdale has a moving town that follows it around, basically a bunch of caravans with wagons like Trixie’s that relocate every few weeks to wherever Cloudsdale proper goes. Would be where the non-pegasus denizens of the city live, as I doubt they’re all SUPER RACIST enough to only mate inside their race, and there are always things like recessive traits (which are canon).
As for the Crystal Empire, I see it as a polis that went “rogue” under Sombra’s control, and now after its appearance is simply seen as an annexed territory of the Greater Equestrian Empire. I imagine that before Sombra took control they were another “tribe state”, like the Pegasus, Earth and Unicorn tribes seen in Hearth’s Warming Eve.