Oh boy, the Need question. Actually the whole idea of these kawaii's came about as one of my usual coarse jokes that got a little out of hand. I never actually expected to have anyone request I actually make them. I pounded a lot of pavement when this thing first started trying to make sure no one would mind if I turned a staple of the setting into a killer. Surprisingly no one dissented, although that may just be because no one actually took me seriously. -_-;
As for who's actually producing these in setting, it's actually a small bunch of illegal labs breeding either fake copies, or converting existing kawaii surgically. Basically a highly questionable operation, resembling other dens for illicit activity, if with a little more sciency bits.
The damage numbers were always transient, I just figured that advances in artificial muscle tech would make them very strong. Although this might just be an influence from the Yamataian downgrade of its Nekovalkrja. I'll tweak the numbers down later tonight.
The, um, “original” weaponised kawaii doesn't actually have any telepathy function. They're mostly sight/smell directed. This breed's a little different in that it's smart enough to give feedback to its owner if it can, otherwise it pretty much relies on the same cues as its cousins.