>>49182590
>Doubtful that magicians work in the same way as the regular youkai.
How youkai exactly work is not that precisely explained. Consider moon rabbits, who are sometimes considered youkai, but they certainly aren't actively go for human flesh or trying to scare humans. Medicine, likewise, isn't interested in that. You have also straight up useful and/or non-threatening youkai like zashiki-warashi, komainu or yamabiko. The last of those is very important here, as they are doubtlessly youkai, weren't dangerous, but only recently started to disappear in Gensokyo, as mechanical explanation of echoes slowly crept into Village's consensus. The fact that magicians that turned youkai aren't general menace doesn't mean that they aren't youkai.
It's far more likely that what youkai actually need is belief, but expressed differently than the one kami try to gather. For many, fearing them (as you need to believe into something at least possibly existing before fearing it) would be the most proper way. But not for all. And even if you want to insist on youkai magicians needing fear, it might be explained not as active horror, but rather a sense of uneasiness that normal humans hold towards those dabbling into arcane arts.
>They are youkai in the same way fairies are: supernatural creatures.
Fairies are consistently (with the exception of Cirno's PCB profile, which may be more of a case for Cirno, rather than fairies at large) differentiated from youkai. In turn, magicians are consistently considered youkai.
>By this definition, lunarians and celestials can also be considered 'demons'.
This definition is sadly stretching the term to the point of snapping, in case of Touhou. Notably, lunarians appear to be some strange variation on amatsukami, with their ontological nature in Touhou cosmology not clear. On the other hand, celestials are continuation of hermits' path and hermits are not youkai, but something else.
Lunarians may or may not sudden collapse of mental layer that would wipe out youkai. Celestials should be fine.

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