One think I don't fully understand. Does Police State (from Autocracy) reduce unhapiness in puppet cities?. I think it is only in annexed cities without a courthouse (The policy says that it reduces unhapiness in occupied cities). If occupied cities means only "annexed cities without a courthouse", this policy should also be buffed.
I'm reasonably sure it applies to any city that has the chain icon, meaning annexed cities without courthouses. However, I while I haven't used the policy in ages, I think the general consensus is that as things stand, it's a great policy - maybe the best the tree has to offer. This is because when combined with Theocracy, your non-courthouse annexed cities actually generate lower unhappiness per population than any other combination of factors in the game, excepting India's UA. You lose out on culture points over a puppet empire because you're annexing (and puppet empires are grossly overpowered for culture right now anyways, and I believe that they should and will be fixed), but by the time you're that deep in Autocracy, you're probably going to get way more benefit from the happiness and production/citizen control than a few extra policies anyways.