NPCs are not soulless automatons

NPCs are egregore-controlled humans, they still have an independent mind but their mind is enslaved and used as a tool for expressing the egregore mind, like a two-way radio channel.
see https://en.wikipedia.org/wiki/Egregore
Its possible to disrupt the link to egregore by subversive thought insertion(aka memes), allowing the original mind to assert its will and independent thought. The egregore can't focus on multiple mental challenges simultaneously and the "radio channel" has limited capacity.
NPCs can be reformed to PCs.

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..to add, these "insular communities" will compete for resources and control of territory, so with absence of central government, they'll have small-scale wars(similar to tribes and ancient states)