From what I remember in your story, even taking Iroh's initial biases into account I thought part of his intense hostility leading up to his report to Ozai was that he was truly convinced that Azula's true nature was either no better or even significantly worse than Ozai's due to the Iroh's suspicions arc. Azula herself told Sokka she was worried that by throwing him of the trail of their relationship that she may have brought the worst out of him. Honestly this was probably my favorite exploration of their conflict, because if they were truly able to trust each other and talk they could have avoided so much pain and trouble, but both of them over the course of the story had developed genuine and/or biased reasons not to trust one another and viewed themselves as doing the right thing despite their actions ultimately resulting in the worst outcome. Azula was trying to prevent a known adversary from having ammunition to ruin their lives and future plans, and Iroh believed that he was essentially hindering the fire nation by turning what he thought were essentially two Evil Ozais with a good relationship with one another into enemies. I can't lie that I'm not slightly disappointed that in the latest chapter that this aspect of their conflict wasn't brought up more explicitly in the conversation with Zuko when Iroh was talking about his biases. Was I personally thinking that the dynamic was more significant than it actually was or is that dynamic being saved for a future conversation Iroh may have with Sokka and Azula?

Uuuuuh, as for the last question... I don't really know if I'll bring it up some more since I do think I've had Iroh acknowledge why and how he fucked up in that respect in the past + exteriorized that if Azula had acted differently he might just have done it too? Am I crazy for thinking so? Did I write that or didn't I? That's a complicated game to play when you're almost at 5 million words of a story... 🤣

Azula and Iroh miiiight have one more conversation in the future and maybe this will come up there, but I haven't written it yet so I won't make any promises on that front. Admittedly, I don't expect their future encounter to be particularly fruitful. Iroh is 100% genuine in what he has understood and learned, though, that can't be denied and I always have hoped to portray him not as a super wicked villain but as a character who thinks he understands far more than he actually does, with motivations that push him into making mistakes he very much comes to regret.

This being said, the Azula-Iroh and Zuko-Ozai parallels in this story are and always have been 100% intentional. Those two tugs-of-war have been going on forever, and the crux of them was very much the fact that Azula and Iroh distrusted and second-guessed and suspected each other soooo much... because they have similar natures, similar thought processes, and they're both intellectual, suspicious, hiding what's REALLY going on underneath the surface, and immediately wary when they recognize all those traits in each other too. Likewise, Zuko and Ozai have some REALLY ugly parallels and one of those parallels, already given away by the chapter you sent this ask over, is going to be the driving force of the conflict between those two, much as a similar thing was the driving force between Iroh and Azula, in its own way: the more they fight to push the other away, the harder they reject the other, the more they end up embodying the flaws they see in that other person, to an extent where they could do absolutely TERRIBLE things just out of wanting to push the other one as far away as possible.

So yeah, the point was never for Iroh to feel like some sadistic mustache-twirling villain who wanted Azula to suffer just for shits and giggles. He had his reasons to do what he did. Doesn't mean he was right. Doesn't mean he should've done it. What it means is it made sense in his head due to his biases, the information he had at hand at the moment, and the particularly awful relationship he had with Azula. Likewise, Azula's rejection of Iroh back in "Iroh's suspicions" caused her uncertainty and anguish because she KNEW she had taken it too far. She was afraid of the consequences. A part of her KNEW that if she acted differently, there was a chance, however slim, that Iroh might not have made the choice he did. And that's why this is such a messed up situation! :')

Ultimately, I want my characters to have motivations that just... add up. That can be traced. That, upon looking at their actions and choices, anyone can go "oh yeah, this is why they did whatever they did". This is good when it comes to establishing ultimate goals, and it's also good when you want to put characters to the test: how far are they willing to go, what are they ready to do to achieve whatever they're trying to achieve? How much are they willing to sacrifice for it? And the answers to those questions can be VERY extreme and painful. Just so, we can find characters who decide to back down and simply surrender over their goals when they realize that there are other things that matter more. But it's a manner of game a writer plays when it comes to gauging and figuring out what a character wants vs. needs, what a character will fight for and what it will take for them to surrender, and so on. Fundamentally, that's how I built up Iroh and Azula's chaotic dynamic. Whatever comes from that in the future, ultimately, their biggest problem may just be that they were just too smart for their own good, tried to outsmart each other a little too much, and never allowed themselves to just... accept each other properly. They came close to it once, yes! But... they failed. And it's depressing as hell, but complicated characters will always be challenging this way...