Anyone else have any Octocanons?
My headcanon is that, with Octavio imprisoned, the remaining Octarians have likely fractured into a number of smaller sub-groups, each seeking survival in their own ways. Some will still try to follow the path of war paved by Octavio and his ilk, while others will try a friendlier, more diplomatic approach.
...then again, that's just my personal headcanon, there is exacly zero lore at this point to support it. :P It would, however, provide Nintendo an easy way to let Octolings be playable while the existing single-player mode still exists--your playable Octoling wants peace with the Inklings, while the enemy Octolings don't.
On the subject of "are the Inklings actually the bad guys", I believe that in real life squid are very much more aggressive and predatory than octopi, though I may be mistaken; it's been a while since I've seen any documentaries on Discovery Channel. :P Either way, make of it what you will.