Café de Nuit

Hi, currently I'm running an Evil Eye campaign and we're almost finished (showdown with Malocchio just happened). However, I'm live throwing in small side adventures whenever my PCs visit a town like Karina. Did the same here, but couldn't resist to mix in "the Speaker in Dreams" (3ed general D&D module) as well, because it really matches well with the carnival/fair theme. (I did leave out the dinosaur btw, and other more famtasylike encounters). My PCs encountered many parts of both modules, but at this point I'm in doubt how the backstory should be.

For those who know both modules: there are 2 options: let the Speaker in Dreams faction be a separate faction vying over control over town or let them be a pawn of Malocchio as well, which does fit the demon part as well (well devil in SoD, but let's not nitpick). But with Gabrielle out of the way, Malocchio doesn't need them anymore, so how should I handle that faction? Any suggestions?

In the original adventure, the villain was an Illithid with dreams of godhood, and used some illithid lifeforms for his attacks. In this case, what has Malacchio (or the Gentlemen Caller who could be building the cult for his son) given the Dreamers for their arsenal?

In general, for these being mad cultists, he most likely would take in the ones he thinks are still useful and controllable, and find a way to cull the rest (possibly even enslaving there ghosts or something like that).