One of the
Threetoe stories does mention puppeteering and using puppets as a medium to do magic with.
There's quite a few different types of puppets too. Like, yeah, marionettes and handpuppets are kinda self-evident, but looking at the
wikipedia page I was reminded of the fact shadow puppets are a thing. Not to mention the really huge puppets like Bunraku or Festival puppets. I guess then, it might be an idea to have a shared framework between these things.
Maybe, because DF has a differentiation between souls and bodies, have puppets and automatons and other constructed bodies count similar to organic bodies, and they can then be either a vessel for a soul, or animated otherwise. This does mean that Necromancers as they are now might be able to animate constructed bodies like puppets. This also means that we might end up seeing Necromancer invasions consisting out of thousands of animated Gingerbread men.
Perhaps also the opposite of puppet to human, human to puppet? (Or, human to gingerbread man...)
Or puppets representing humans in rituals, like voodoo dolls, but perhaps also as a symbolic element within a ritual to target the ritual?
As for the performance aspect, I guess theatre in general would be cool. But I guess that'd need like, the concept of stories. Stories themselves could have a generated genre structure, like poetry does. Events and made up plotpoints could have some kind of interpretations attached to them(I guess this requires the starting scenarios framework), which can then be used to determine the purpose of the plotpoint in the story. Histfigs ought to be able to actually receive the information of the story so they can tell it on...
Other things that'd be necessary is concepts like costumes, symbols on costumes, traditional ways to depict someone(like, Punch and Judy, as well as other Comedia del'Arte figures). Though, I guess that later part could be abstracted like it is for figurines now. Puppeteering across multiple Z-levels would be necessary for marionettes and the really big puppets.