Both Heaven and Hell use human souls as currency and power. Heaven traps human souls in little personal dream-prisons so they remain content and complacent (like Michael did to Dean in his mind) so Heaven can then harness their soul power to "keep the lights on" in Heaven's offices and for angels to derive their power from.
Angel grace production is dependent on an angel's connection to the Heavenly Host. When they are cut off their grace becomes less potent and reproduction diminishes. When they are within the fold of Heaven, they are at full power. Hence why Cas's powers continue to diminish over time, even after his grace is "restored."
Later seasons muddles this lore when Naomi suggests that the diminished number of angels is the reason Heaven is barely keeping the lights on. A possible theory to bridge the gap between these varying lores, is that angels are a necessary conduit to "process" the raw soul energy into energy that can be used for maintaining Heaven. So, the more angels there are in Heaven, the more soul-energy that can be processed and converted into "grace" and other Heaven-supporting power. Now that there are few angels left, they can't keep up with the energy demands of Heaven. They have all those souls in cages, ready for processing, but not enough angels to do the processing.
Hell, on the other hand, uses human souls to create workers to continue to fuel Hell and propagate Hell's missions on Earth. Souls go to Hell to be tortured and transformed into demons. Hell doesn't have to worry about diminishing numbers because they can always make more demons. Making more demons is easy! It's a renewable resource. Unlike angels, which seems to be largely finite. (More angels could be theoretically created, as we see Jack attempt to do under Duma's guidance, but its methods are dubious and results unstable).
But Hell? Hell uses demons to make more demons. Both through the torture of souls and through the use of deals. Deals are how they draw in new meat. It's kind of MLM vibes. Demon mentors other demons. Those demons go out and make "sales" and draw in new souls to become demons. There are quotas. Analytics. Reports and performance reviews.
And Hell originated with Lucifer -- angel. Humans (souls) have always been a commodity to angels. The whole reason for the apocalypse WAS to cause death and destruction. The so-called "paradise" would be for the angels. Think of all the souls they could reap in the fallout of Lucifer and Michael's battle? All that power ripe for the taking?
It's also why Cas goes for the Purgatory souls when he needs power to defeat Raphael (many monsters were once human, so their souls function similarly). And it's why a soul-bomb could potentially kill a cosmic being like Amara (concentrated energy like that would be nuke-levels). It's why both Heaven and Hell hate hunters like the Winchesters for meddling and messing with their plans and not following so-called "fate", for choosing free will, thwarting apocalypses, saving those human souls from deaths where they could have become commodities for Heaven and Hell.
Heaven and Hell, while seemingly opposites, work in-tandem to keep humans on Earth subjugated. Heaven just has better "PR" as they say. But angels are not "the Good Guys" to Hell's "Bad Guys." And they both function similarly when it comes to their use of human souls.
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