Of course the refugees should be a major part of Rivington, it's been foreshadowed heavily by events and cut-scenes beforehand. It's the way of storytelling that's being called out.

You could have the same situation elements: squatters, resentful locals, terrorists, desperate refugees, looting, Gortash. Just don't insert value judgments or do story copouts with villainous caricatures. Have some real consequences:

- Side with squatters? It spreads and Gortash's support hardens. Clamp down begins.
- Side with owners? Squalor and disease take hold. Riots begin.

As is, it's obvious who the bad guy is and what to do. Bit of a time sink really.

Regarding SH and Astarion, that' not so out of character; SH lived in a commune and Astarion is happy to stick it to the powerful. And anyway, losing a point of approval is fine if you stick to your character's guns. You're playing a willful protagonist right? You should be upsetting people on occasion.