As a crude model of how to set NPC behavior, I'd suggest that logic and reason should only be applied after the prejudices of the NPCs culture have gotten him into so much trouble that his livelihood and income is threatened. Even then, an INT and EGO check might be required. Habit is the most important aspect of culture. The truly human NPC should solve today's problems using yesterday's solutions. The cavalry commander is real good at catching Confederate supply trains, and hitting infantry in the flank.
Courage is the major status trait among the Indian warriors.
Whatever solution they might have to their problems, it must involve the youngsters showing their worth. Talking tough with a few dozen cowhands with rifles at his back has always worked for the cattle rancher. Many of the German farmers emigrated after the failed revolutions of 1848. Their ideas of Liberty, Law, Tyranny and Discipline are shaped by their failures in the Old World, as well as the promises made in the New World's Constitution. The NPC must have a history.