Advent Children introduced three new characters into the mix; it produced a trio of young men whose likeness to the great Sephiroth is uncanny: Loz, Yazoo, and their leader Kadaj. Upon being struck down by Cloud, Sephiroth's spirit dispersed, refusing to enter the Lifestream and instead manifesting itself in the form of three living, breathing human beings bent on finishing his Reunion.
Cloud first encounters the trio in an ambush on the road; because of his involvement in the Jenova Project, they view Cloud as a fourth brother and fellow crusader for Mother. However, when Cloud knows nothing of Jenova's whereabouts and does not comply with their demands, Kadaj and his brothers brand the man a traitor, targeting him in their violence whenever he dares to cross their path.
Although the animosity between Cloud and Kadaj does not run nearly as deep as that between Cloud and Sephiroth, there is a hint of fear Cloud feels towards the younger man. The similarities between the boy and the General are striking, and Kadaj's unabashed approach to his mission is unnerving; he takes on and tortures Turks, he targets children to fulfill his Reunion--he shows mercy to no one.
In the end, Cloud is able to see Kadaj for what he is: a puppet. Unlike himself -- who had been altered by the Jenova cells in the laboratory -- Kadaj is wholly made up of Jenova's will. He has no "real" life to recall or to which he can return; he exists for the sole purpose of serving Jenova and Sephiroth. For that reason Cloud finds new confidence; he knows that he's beyond that. He has a soul of his own; he has a mind, a spirit, and a heart that makes its own choices. He is above these violent men who are really little more than children.
And there is pity.
On the most basic level, Kadaj and his brothers are no different than the other orphans of Meteor. They're lost, alone, and constantly yearning for a mother to care for them; they don't know that Jenova is a monster that lives to destroy and conquer. As is evident in Kadaj's final moments, they honestly believe themselves to be serving a kind, nurturing Madonna who will love them as her own if they do her bidding.
Cloud knows the true nature of Jenova and the ill that will come of serving her. As someone so compassionate who has also witnessed these events first hand, Cloud can't help but to feel at least a little empathy for the men -- boys, more accurately -- whose passionate crusade is so misguided. Of course, no amount of misguidance can change the fact they attacked and gravely injured Tifa, kidnapped both Marlene and Denzel, and threatened to bring back the one man he fears the most, but the glimmer of grace remains.
