Housepets!

Kit finally begins to act like a dad
as ‘sweet’ Craig gives him soft soap.
He remembers you of old, dear boy,
you’ve really not got a hope.
He’s finally going to take charge
and leaving you safe at home.
(But it may not be safe here,
with negabreel under the dome)
Kit prepares to go to war;
not kissing his cubs goodnight;
Demosteward had best beware
‘Heaven’s finally entered the fight.

(And I think he's finally worked out leaving them with their memories is a bit cruel.)

Yeah, I think Pete needs a bit more time as a mortal before he becomes a Celestial again, judging by that last line he said.

Yeah, Craig blew it with that last line.

Cue Kitsune realizing he is hopelessly outmatched and can't defeat the demons and needs Pete and Dragon in 5...4...3...2

Aww, see Craig cry like that makes him so desperate, but after all, he's just a little brag. You want too many things, especially that last one you said, indeed... Calling Great Kitsune dad isn't going to help you either, anyway, eheh. So, really Great Kitsune is still living his demigod life with powers, so he can potentially do something on the kits. Well, with such powers, you could erase those memories of them, then. You should sleep at afternoon because you foxes are nocturnal creatures, isn't it?

So, wait, if Pete is one of the kits, is Dragon the other? I admit to forgetting a lot about them, but what did Dragon do to be punished like this with Pete, and with Kitsune controlling their destinies?

The penalty for losing the grudge match at U&U was a mortal lifetime. Both Dragon and Pete technically lost because their chosen avatars refused to fight.

I think Kitsune had an idea this might happen so he very wisely decided to stay out of it. Though I think he will suffer the same fate as Pete/Craig and Dragon/Draig soon enough.

I so hope we get to see Kitsune’s true form again

It might be the last time we see it for a while.

Craig cries and whines, "Geez, dad, you're tough,"
But GK sends a reminder that just one good deed isn't enough
GK listens and almost gives him a chance-
But then C loses it asking for supplicants.

So if they don't have their memories, who does?
And why should they sleep in the middle of the day?
Kitsune, you're really acting like scuzz,
But it's not my right to judge? Okay.