Along the thought process of horrific abuses, I think that's perhaps the very point. He's created a world for humans to indulge in things they wouldn't/couldn't normally do, raw human nature, sex, violence etc. Despite the fact these androids aren't supposed to remember anything, they've been storing long term memories without access to them, and after the most recent update have been able to do so, and are now displaying more human qualities. That's possibly not unintentional, perhaps that was the update, and the intended next stage of their evolution. The old dude seems very curious about how they're progressing as part of some experiment.
And old papa bot is now questioning his existence and the nature of good vs evil, and quotes a line from Romeo and Juliet. But again, I don't think they've given us enough in one episode to know how it's all supposed to fit together, since it's the major arc of the show.