We're really getting into these cursed demonic swords. We are also diving into the political climate of the setting. The change of swearing to your beliefs rather than your lords is one such example. As more people are arming themselves the introduction of these demonic cursed swords comes into play. As we see in this episode they are quite dangerous.
The meeting with Yashuhide was quite interesting. He seeks to maintain the pride of the samurai, but is there more to it? Isolationism is the other thing he mentions, though Jinya has no interest in that as for now he focuses more on himself. More so, Yashuhide wants to maintain the old ways, basically. Though the fact that Yashuhide has a demon serving him is quite interesting and potentially terrifying. The idea of humans & demons is coexisting is one thing, but I feel that Yashuhide's action might be closer to a demon.
Though the fact that Yashuhide presented that demonic cursed sword to Sugino has me even more suspicious of him. It's quite tragic because he didn't know what that sword would do. Honestly, losing his wife might have set him just to kill for the sake of killing. The political climate just potentially made it seem he had a motive with his actions. More than likely he had lost everything, and we see him blaming the sword, but he just dived deeper embracing it.
What is more interesting is Jinya peeking in the memories of the sword and seeing the man who made the sword. It seems to be using the blood of Nameless, who we remember was with Jinya's adoptive father in the past. Curious if she is still around. Though the mention of demons & humans coexisting is still a hurdle. Though it does seem this happened with Nameless & her husband. We see that as well with Ofuu & her adoptive father. Of course, the case of Natsu is when clear issues arise about their coexistence.