My impression was that Sugarshoe offering a mangled re-telling of the story was some sort of abstract iteration of the story's cannibalism? Like in the same way that Sugarshoe devours his plant-parent, he sinks his teeth into the story he that made him and makes it his own. Which is very Caliborn, like sabhait was saying -- we sort of get the same 1-2 punch from Caliborn killing Calliope and then writing Homosuck.