Shyloh respects your decision after all ;)
spoiler tag
But yeah, the choices you mentioned are all for building up points with the pixies! For example, in the scene with Yulen and Merka, picking “Threaten them” vs. “Stay Silent” determines who you gain points with— one choice favors Yulen, the other favors Merka.
Otherwise, Shyloh would be hogging all the point opportunities XD Gotta keep things balanced!