If Sauron prevailed...

[Galadriel55]

Originally Posted by Zigûr

I think something like the second scenario seems fitting. While I imagine Sauron would not have even admitted the existence of the Valar to his minions unless he had to, I can see him constantly finding new "undesirables" within his own realm to target for terrorisation and destruction in order to keep the rest of the populace in line. This would be consistent with real-world totalitarian policy, as Hannah Arendt for instance interpreted it.

I want to point out that an enemy need not be people. Easiest I can think of is hunger. Convince people that they need to work together for their own survival, to produce enough food. If Sauron is like Saruman in this respect, he's all about industry. Convince people they need to turn gears and build roads and complete other projects. They'll have to accept help from each other and they'll be too tired to rebel. It's all ruined by the less altruistic and trusting individuals, but then again Shagrat and Gorbag made a career and various Snagas would desert and break rules here and there. As a long term plan, this won't last, but it can sure help bridge gaps between armed conflicts.