Well, without reading the actual 'capitol punishment mlp fanfic', it's hard to give a detailed analysis. However, if we assume that 'capitol' might be a misspelling of 'capital', it could be about a form of punishment within the MLP world. It could explore themes like justice, morality, and how the ponies deal with wrongdoings. For example, it might show how Twilight Sparkle or other characters react to such a system.
It might be a young person who has grown up in the post - Hunger Games world of Panem and is now facing new challenges that are different from the ones Katniss and Peeta faced. This character could be from any of the districts and might have a unique skill or perspective that drives the story forward. They could be someone who is trying to bridge the gap between the districts and the Capitol or is fighting for a more equal Panem.
The plot might involve a group of ponies who are wrongly accused of a crime in the Capitol. They are then sentenced to a cruel punishment. As the story progresses, a hero pony might emerge, like Rainbow Dash, who tries to prove their innocence and fight against the unjust punishment system in the Capitol.
I think we can expect to see a deeper exploration of the different districts in Panem. Maybe there will be more backstories about how they came to be in their current state and how they interact with the Capitol. Also, there could be new twists on the Hunger Games concept itself, like different rules or types of arenas.
It's hard to say exactly how the Capitol would react. They are a complex and often cruel entity. They could see the fanfiction as a form of rebellion, even if it's just a creative exploration. They might start to investigate the authors of the fanfiction to see if they are part of any real - life resistance groups. Or they could simply laugh it off as the silly musings of the oppressed districts, not realizing that these stories could potentially have a greater impact on public perception than they think.
Well, it could be quite interesting. Maybe they would be amused by the creative interpretations of their world. Or they might get angry if the fanfiction portrays them in a negative light that goes against their carefully crafted image in the official story.
One interesting Capitol Hunger Games fanfiction could be about a Capitol citizen who secretly sympathizes with the tributes and tries to help them. They might use their position and knowledge of the Capitol's inner workings to smuggle in supplies or pass on crucial information.
In such fanfiction, the inclusion of the Capitol's children might bring unexpected alliances or conflicts. It all comes down to how the writer wants to shape the story. They could introduce new dynamics and power struggles.