A Youkai that has both the power to control boundaries and read the sub conscious... Yup were screwed

Just think of the possible outcomes with those powers like putting you in a space of your deepest desires and secrets only to brutally mind fuck you until you break down into a worthless pile of living meat

You aren't giving her enough credit; she doesn't simply read the subconscious, she manipulates it. It's different and much more dangerous.