Does the opposition know that it's controlled? Yes and no. I don't think the opposition sees itself that way, but I believe it's almost always critically controlled. It operates within strict unspoken boundaries.
It's simple. If you look at the media that 'officially' opposes government, which includes universities, well known commentators and think tanks, etc, you will notice they never hit with words and assertions that could become a real threat to big brother. They're always too polite, immature (sassy) or petty, to provoke a serious public reaction. And I think it's silently deliberate.
Opposition to power doesn't see itself as working for government, but materially they do. They know that if they say things the wrong way, too much, they'll win a target on their backs. For example, the government would then go through their history with a fine-toothed comb, and look for any excuse to somehow do them over, directly or by proxy, or somehow threaten people that they're dependant on, etc (as happened with media giants like Facebook and Twitter).
Insofar as media will not risk creating enemies who can hurt them, they will help the government in practice. Opposition media will then diffuse public irritation by superficially satiating it, as it never talks head on or opens 'dangerous' cans of worms.
For example, opposition media in New Zealand is challenging the government on having an honest Covid enquiry, which in itself is all well and good. Yet they never state the obvious of which requires no inquiry at all. As follows:
"The government mandated experimental-class injections for a bug with a flu-like mortality profile, which is a serious crime against humanity according to both the Nuremberg code and common sense"...
That hard-hitting but accurate statement is dangerous to government - the preoccupation with the official inquiry is not. So, let's keep it safe, guys. Just stick to the inquiry issue. Yep. Good distraction. It helps stop the public from demanding an outright criminal investigation. The worst that'll happen with an inquiry is a few fall-guys getting hand slaps. No Nuremberg-2.0, so roll on the next "pandemic"...and we, the media, get no target on our backs. Phew. Back in business.
I can give another personal example. The forum, The BFD, published an article of mine that I originally titled "Is the New Zealand government Evil" which was [too?] hard-hitting. The BFD published the article, but changed the title to a basically meaningless and non-clickbait "Does evil lurk behind the mask". Again, I presume the BFD didn't want to provoke to the point of finding themselves targeted by government.
Alas, there's been only one person from the past 30 years in New Zealand that I can recognise as a true non-controlled opposition - Liz Gunn. And sadly, she did indeed find herself in the crosshairs of state power...
After videoing a friend coming into Auckland airport, the police somehow managed to arrest and significantly injure Liz for her video "crime", and without explaining the law she was breaking. She was later convicted of assault for lightly touching an airport personnel's shoulder, though only to get her attention. Yes, they got Liz on an obviously pathetic technicality. Basically, the state let Liz Gunn (and everyone else) know who's boss. Gunn's new political party, New Zealand Loyal, is now over. It seems there will be no true opposition in New Zealand, thank you. Power talks.
I believe the world we're living in is run by killers. As power is a competitive game, is makes sense that the most ruthless players will gravitate to the top. It seems our world is run by people who take their agenda's so seriously, that they will do whatever it takes to protect them - including assassinations as required. As long as this is the case, as I believe it is, real opposition will be forever hard to find. It takes too much courage.
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