This is assuming that Zenos was not claiming the budget for other purposes and then using them for the R&D in question. Ala Mhigo and Doma were particularly recalcitrant provinces, which is why the Emperor might have allowed his son control over them in the first place - to ensure they don't rebel again. Whether he was fully aware of all that went on or not, is unclear. As to Elidibus referring to him as a test subject... the context is entirely unclear. That he did not have questions about it could be due to the fact that Elidibus had already made him aware of the chain of actions that led to Zenos empowering himself and giving rise to Shinryu, which the Emperor might at that point have allowed if it got the WoL off the Empire's case. It is true, he did not seem surprised at the choice of wording, but the whys and wherefores are in the dark.
I don't really disagree with your broader assessment as to how things might pan out for the Empire, but it's not a fait accompli just yet. There's too many missing threads to conclude much about the Emperor's role in it yet. On the one hand, he did not see his son as fit to sit on a throne, precisely because he considered him to be a monster, he opposed Project Meteor and you have to consider the fact that a man as honourable as Regula was very loyal to him on a personal level. On the other hand, he does exercise some level of censorship and he wishes to subjugate the Eikon threat and its causes by any means. With what happened in the Dragonsong War, you can certainly see why the Empire has even more reason now to worry about how Eikons can arise than it did before. I had suspected they might pull a Kefka when the Warring Triad came in with Regula, yet they haven't. If they substitute Varis with a more palatable choice later on, if/when the Empire chooses to work with the Eorzean Alliance, so be it.
Yes, it's interesting that Elidibus repeated the same line to him that he had to "us", and it might be that he had more success convincing Varis than the WOL or indeed Urianger, yet this is an individual even more cynical about aetheric entities like Primals than Thordan was. I have trouble believing he will simply fall prone to the "well this Ascian sure seems like a good guy!" line of reasoning. If deceit is their hallmark, why not assume the worst of Elidibus from the outset? He most likely will, particularly having seen Thordan's fate, and his son's own. So we'll see if he is just playing ball for appearances' sake, whilst it benefits the Empire, like Thordan did with Lahabrea.
All we have for now are speculative threads to go off and given how much SE can surprise us with the twists and turns they take, I would say a dose of scepticism remains reasonable at all times.




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