He sees you when you're sleeping; he knows when you're awake ...
He knows if you've been bad or good.
I'm assuming the late game strategy is spending all your gold to cycle through the monsters to find something to help you win last second or stop someone from winning?
Yes. Most of the time, it's the Pegasus. The rest of the time, it's usually the Chimera so you can grab the Pegasus out of the discard pile.