Chapter 121 recontextualises this scene
Shiba was once on the receiving end of mercy, but it was merely because of the usefulness of his sorcery. He survived back then not out of virtue of his strength, but only for the fact that he got "lucky". I don't think he ever stopped wallowing in guilt.
Now that he had the power to spare others, and the both times we see it, it was to give his former enemies the chance to have a better life. He even offers advice and all that.
I think him doing this acts as a small form of "therapy" or "reconciliation with the self" for him.
And here, he says he won't criticise Tenri's way of life. I believe that he and the Tou led somewhat similar lives. He spent a big portion of his life in servitude of the nation and the Kamunabi. He was brought up to fight, again for his sorcery, I suspect. He was literally involved with one of the most important events in Japanese history. Yet what does he get from it? Hiyuki didn't recognise him. Even if he himself doesn't want any recognition, I always found it a little sad.
Sure, he failed back then, but shouldn't he and the squad at least be honoured in some way just for the fact that they gave their lives for something they never stood a chance in?
He had always played a supporting role, both narratively speaking, in battle and in the story of his life. A shadow. A tool that doesn't need a brand.
In the end, there wasn't a single spot left in the history books for Shiba Togo.
I also always thought it was interesting how much emphasis there was on "Go home" when he spared Enji. Now we know.
He was the only man who got to go home that day.
And if they had retreated much earlier instead of fighting on in unknowing futility, even if it was in shame, they would still be here. It doesn't matter if they don't even scratch a dent on the Mikaboshi. They would still be alive for at least another week. That would've made all the difference for Shiba.
It's definitely also why he prioritised on saving as many lives as he could instead of jumping in the fight when Akemura, Chihiro and Samura duked it out in the middle of Tokyo. He knows intently what his role is supposed to be.
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