I can take a stab at that.
It seems that PokeMadhouse originally started as Lily just setting up a silly scenario and wanting to do silly things within the context of Pokemon. Gardevoir, being Lily's favoritest Pokemon ever, was of course there and was of course her best friend, but she was also using G as a subversion of the typical Gardevoir-- whereas Gardevoir oftentimes have their 'devotion to their trainer' interpreted in a distinctly, um... feminine way, G was brash, sassy, and originally seemed to be disgusted by the idea.
Before I go on, this occurred to be a little earlier today-- stories are defined by their stakes. These can range from deeply personal to world-ending, depending on your intended scope. For a slice of life comedy, this can be anything from tackling a character's common neuroses to a short story about somebody trying to buy milk and encountering a series of progressively stupider events on the way. Even in an Ask blog setting the characters usually have some kind of internal motivation for behaving the way they do, and that winds up defining their responses to the Askers.
Lily is a bad writer for a lot of reasons, but I think she has some understanding that writing usually involves some kind of core concept. In the case of Madhouse... there isn't anything. Lily just hangs out in a house. She has girlfriends that show up sometimes. Her Pokemon are... you know, there. Sometimes Butterfree is a little cute. But there's simply nothing going on. Nobody is defined by needs or desires. Nobody strives for anything. We never see Lily interacting with her girlfriends to even get a sense that maybe she wants love and affection, the Pokemon are just accessories, even G is defined less by who is and more by the absence of a concept. She isn't like those other Gardevoir who have been groomed to want to fuck their trainers, but what she is in return isn't clear. And you can't have a character defined just by absences.
(Well, you can, but that's usually a case of dealing in abstract or existential concepts and Lily ain't about that.)
I mean, like I said, even in slice of life comedy you can pull a story out of just going to the grocery store. Seinfeld famously was a show about nothing, but the interplay between the characters -- their own wants and desires and personalities clashing against each other -- is what made it fun to watch. At the end of the day nothing happened in a narrative sense, but that wasn't the point. Nothing wrong with that idea, either; the point of slice of life is to watch these character's lives and these little silly, dumb, or dramatic moments that they go through.
But introducing actual challenges to the house, or interpersonal strife, or even the idea of things not just being perfect in Lily's world is somehow abhorrent, even though author!Lily has an entire backstory for her character that she could plumb for interesting content. (And yes, I know, Lily can't write so it wouldn't actually be interesting, but at the very least things happened and there's conflict in the background. Related, but Lily has also screamed about how backstory is pointless and you should always be showing the most interesting part of a character's life so why do we see her comic self-insert just sitting around the house all day when she used to be a League Enforcer breaking up Pokemon sex trafficking rings or whatever? Why don't we see G actually struggling with her decision to mind-rape Lily instead of being told everything after the fact? Even things that are happening in the present have the wrong focus; the whole thing with Bonnie literally has the scientist say 'Guess we gotta kill it!' and then it just smash-cuts to Lily looking vaguely disappointing in a corner of the room, why not show her actually protesting? I know the answer, this is all rhetorical.)
The comic's just spinning its wheels, frankly, but then Lily starts getting messages from her fans. She has admitted that she only started doing Lilyvoir stuff because her fans demanded it, and she probably made it the most demented, ridiculous interpretation she could as a Fuck You to them. Yeah, you wanna see Lily in a relationship with G? Guess what motherfuckers it's gross and toxic and suddenly we have actual conflict and I'm not gonna lie-- if Lily had actually buckled down and explored this fucked up relationship she wrote, it would be legitimately interesting. Fucked up, but, you know... something would be happening. Characters would be clashing. Questions about morality would be coming up and the answers would be messy.
So Lily has introduced conflict, and that's great. Maybe she's even interested in exploring some of it-- I mean I guess she must be if she's been following this for so long and just keeps dipping back into the well, refusing to let G ever make real progress. But she's also in a situation where real conflict can't actually happen because otherwise her self-insert would have to deal with something, so instead it becomes a series of vignettes where you're threatened with something possibly happening and then it just fizzles because writing is hard you guys. She's probably also enjoying the idea of her self-insert exerting absolute emotional control over this incredibly powerful, protective entity that would literally die for her while she barely has to engage with it.
So I think the situation is twofold. Lily keeps bringing up 'power dynamics' and I suspect she very much likes to play with this particular power dynamic and is doing everything in her power to force it in place while not actually thinking about the consequences or implications, she just wants to get to what she wants in the easiest way possible, which is instant gratification for both her comic self and her real self. And her real self gets instant gratification from fans praising her and she's figured out that Lilyvoir drama probably attracts the most interactive attention. As long as she keeps teasing her fans, she'll keep getting that endorphin rush, so it's both in her best interests to keep stringing people along and also just the path of least resistance to never change the status quo.
tl;dr
Lily is bad at writing and desperate for attention.