Actually Crescent all wendy said was that she's in spirit form now, and that she's very proud about where she ended up and we'll eventually all know the story. She never actually said she was dead. There's still a large faction of us who still need a body. Plus I wouldn't put it past Wendy or Richard to word things carefully so we jump to our own conclusions. Not every elf in spirit form is necessarily dead. (I believe that certain types of astral projection can be considered spirit form).... not that I think that Kahvi's suddenly developed magical ability...but hey, lots and lots of things could have been done to her that don't include death necessarily.