This is by far my favorite cutscene in Xenoblade Chronicles, and I decided to make a nutshell version of the cutscene, in my paraphrased words. I'll include the original in-game dialogue on the side, with the nutshell dialogue in the middle.

Egil:
Vanea... Where have you been?
Oh, hey there, Vanea. Wonder where you've been.

Vanea:
Egil, why do you go so far
to destroy the Bionis?
We survived that battle.
We should have created a new world
in which we could live in peace.
And we still can…
What is with you, all bent on revenge?
We didn't die, so why not create a new world?
It's still possible.

Egil:
The rage of those who were annihilated
by the Monado will never dissipate.
It's all the Monado's fault, so there.

Vanea:
Think not about avenging the dead.
Think of the living. Please, Egil!
I don't want to lose you. Are you so
resigned to giving your life for this?
Oy vey…
Is that all you care about? Kicking the Bionis' butt?
I told you we're not dead, so why do you want to die?

Egil:
Life or death, I care for neither of these.
The agonised cries of our brethren
resound within my ears.
Until they are silenced, I am deaf to all else.
Literally everyone died during that attack, Vanea.
I've got revenge on my mind, sista, and you can't take my mind off revenge.

Vanea:
Egil…
Hoo boy.
It's gonna take a lot to change his mind.

[Vanea turns just as Shulk and his companions enter.]

Egil:
So you have finally arrived. Heir to the Monado.
'Bout time you showed up.

[The group stand before Egil.]

Shulk:
You are Egil, leader of Mechonis.
So, you're Egil, the Mechonis' head honcho.

Egil:
That I am.
Of course. You have never seen
me outside of my Face - Yaldabaoth.
But even if I am without it,
you will never defeat me.
Mm-hm, I'm that guy. Pretty handsome, don'tcha think?
Oh, wait. You haven't seen me without my Face.
Ya like him? I call 'im Yaldabaoth.
Even though I don't have him on me,
I can still kick your butts.

Shulk:
Wait. I didn't come to fight you.
Look, I don't wanna fight.

Egil:
Cowardice?
Then relinquish the Monado
and kneel before me.
Aww, are you chicken?
Then hand over the Monado
and grovel at my feet.

Shulk:
I didn't come to surrender to you either.
I just want to know something.
Groveling ain't on the schedule either.
Just came to ask a question.

Egil:
You have my undivided attention.
Ask your question.
I'm all ears.
Ask away, then.
I've got all the time in the world.

Shulk:
I've seen the legends of the Machina
right here in the capital.
I think I understand why you
want to fight the Bionis.
But why send the Mechon
to attack the people of Bionis?
I just found out a crap-ton of info about the Machina.
I think I get it now, why you hate the Bionis so much.
But why make us suffer at the hands of the Mechon?
Are you some crazy sadist or something?

Egil:
Hahaha!
Heh, that's funny.
"Crazy sadist." Good one.

Shulk:
I don't see the joke! We share the same world!
The Homs, Nopon and High Entia live in
harmony, so why not the Machina too?
Hold on a second, why is this funny?
We all live in the same world, and if
the Homs and the Nopon and the High Entia can live
together without going at each other's throats, why not the Machina?

Egil:
Tell me, boy. Are you familiar with
the concept of starvation tactics?
You ever hear of a little thing called starvation tactics?

Shulk:
Of course.

[Reyn crosses his arms in confusion, so Dunban explains for him.]

Dunban:
A military strategy in which you cut
the supply lines and starve out the enemy.
Sheesh, you make me seem like a walking dictionary.
Military strategy. Cut off supplies to the enemy side.
Starve 'em out.

Egil:
So then you understand that that is the
best method by which to ensure victory.
I have no resentment or hatred
for the peoples of Bionis.
I am simply depleting the Bionis' energy. Striking back
at the titan that robbed my people of their lives.
I take it you understand that it's what I've been doing.
I don't have anything against you guys.
I'm just doing my job.
Depleting the Bionis' energy.
Getting revenge n' all that jazz.

Shulk:
I don't understand.
I don't get it.

Egil:
Perhaps you need me to put things more simply.
All life on Bionis exists purely to feed its master!
*sigh* Then allow me to give you a simpler explanation.
The Bionis just wants to eat you.

Shulk:
What?!

Egil:
Ether, the base element of all things
that exist in this world.
My body, your bodies... You are aware
that ether is the foundation of them all?
So we're all made of ether.
Myself, you guys, everything.
You know that, right?

Shulk:
Yes.
Dang, your voice is hot.
I-I mean, 'course I do.

Egil:
Ether is power. You are the
source of that power.
All life that is born from the Bionis dies,
and is returned to the Bionis.
Unlike the Mechonis, the Bionis feeds on ether
provided by those who return to it.
Upon the moment of its eventual awakening,
it will require an incredible number of lives.
Simply stating, ether is power.
And apparently, you're the source of that power.
You're from the Bionis, so when you die,
you're gonna become ether.
And when the Bionis awakens,
about a million of you are gonna have
to die and become ether to replenish its energy, so…
Yeah.

Fiora:
But that means…
Wait, what?

Reyn:
What're ya talkin' about?!
Are ya sayin' we're just food?!
Hold on a second, we're gonna be APPETIZERS?!

Egil:
It was the Bionis that created you
for such a purpose. Not I.
Hey, it's not my job, it's the Bionis' job.

Shulk:
So you attacked Bionis to reduce
the Bionis' power supply?
You're saying…
The whole "attacking Bionis with Mechon" thing was just so
you could reduce its power supply?

Egil:
Correct! You are nothing more than bugs
to be devoured by my sworn adversary.
Do not speak to me of your
foolish dreams of unity.
Well, DUH! What did you think I was doing? Sitting here
twiddling my thumbs and waiting for the Bionis to screw us over?!
What did you think that whole speech was for, just so I could hear myself speak?!
Ay yi yi. You guys are hopeless.

Shulk:
Foolish?
We only grieve for those we've lost, as you do!
Machina or Homs we've suffered the same!
Don't tell me it's different!
Hopeless? Now listen here, mister!
We've suffered as much casualties as you have!

Egil:
Indeed. We have both suffered.
Mm-hm. I agree with you, somewhat.

Shulk:
So then...