I think this is the most important part of Act 1 for the Inazuma Archon Quest. While the stuff before it introduced us to the new region and how it operates this is where we get the meat of the story.
By now everybody reading my stuff knows how I interpret the story and how I believe there are 2 versions because MiHoYo was forced to change their original story.
This part of the quest tells us the original story but in our current version MiHoYo managed to rework it somewhat so it still fits. So we follow Domon and his disciples up to the shrine and they think he's possessed but of course both we and Yae know he isn't.
Side note: Cute thing we now know that if he had been possessed Yae would have definitely known. Possession in Inazuma is a thing but it mostly has to do with Leyline memories of stronger beings like youkai. And if a youkai is possessing a silly human Yae can not only figure it out but likely even identify the youkai. So here when she's like "bruh he's not possessed" we know she knows exactly what she's talking about.
Anyway I said this all they way back when this quest released but when Yae's talking about what's going on with Domon we can see she's actually thinking about her relationship with Ei. She likens Domon to Ei and she herself is represented by both Anzai and the master. Being Ei's old master the original Electro Archon she thought she could eventually teach her Impermanence (or Transcience as MiHoYo likes to call it in English) to Ei instead of her unrealistic ideal of Eternity. Instead Ei ends up being stubborn enough to beat her (ironically becoming without idle thoughts just like Buddhism teaches to understand its concepts like Impermanence) claiming her ideal above all others. What ends up happening is that Yae who didn't think she cared about her status as her superior became bitter in defeat. (death in the revised story)
As the conversation ends we actually got a major spoiler for Act 3 but we'd never know. And that's awesome looking back on it now. So Anzai reappears and tells Domon that each time he defeated an opponent he didn't just leave them broken. Instead he became all of their ambitions. He took on all of their ambitions. What does Yae tell us in our rematch against Ei?
We aren't enough to beat Ei but we took on the ambitions of all the people fighting against her and together Ei stood no chance.
And then Anzai funny enough drops another doozy. If Domon no longer has his ambition it means they no longer can place their ambitions in him and they have to carry on for him. And maybe it's time Domon put his ambitions into others. I'm about to do it again. My year old theory from We Will Be Reunited? This idea of our MC not being enough and that we need to inspire others to rise up so we can place our ambitions into them? It's part of it. Much later on in the story and there's a specific reason why. I really need to get that thing out lol 
Ok onto lighter subjects. 
Let's do another round of guess that element! Domon is a prodigy. He mastered his sword art very quickly and his peers think he did so without much effort. But there's another part to it that Anzai can admit to now. Domon was single minded in his pursuit of perfection in the art. He might have advanced very quickly and beaten even his own sensei but that's because of his dedication.
Long story short. He's Chil- I mean Hydro.
But yeah he's Childe's variety of Hydro and we can see this because of what happens once he loses his Vision. All the things he did to become the best at Meikyou Shisui the rivals he beat without a thought they all came crashing down on him as guilt. Think about what would happen if Childe had to face all the stuff he's done? You might say he doesn't have a conscience like Domon but we actually know that's not true because of Teucer. Why else wouldn't he want his kid brother to know what he gets up to? At the end of the day Childe also knows the consequences of what he does in his pursuit to be the most powerful fighter but as long as his ambition is around he can ignore it. Imagine if he lost his Vision? And it would be even worse for him because he has a Delusion to maintain. He needs to stay hateful to keep it from killing him. Could it happen?
Finally how in the hell doesn't Paimon know about the Narukami Shrine? She realizes it's pretty much the most important part of Inazuma right? It's got the torii gates the thing that's like everywhere in Japan leading to a shrine that's the Genshin version of basically a third of all the shrines in Japan. Right and it's on top of a big purple glowing mountain that's split in half! You can see this mountain from Musk Reef in Mondstadt! Paimon's got weird memory lapses.
And that was a very fun look back at this old Archon Quest.
Tips and Tricks from a Super Casual Genshin f2p
