So they killed the body but the evilness wiggled out. Makes sense, but what happened to Emiline! Is she alive? Is she dead? Why is she a fluff-gon now?
My theory is that a couple of the Naga's minions escaped as well. Namely, the centipede dragon that stabbed and possessed the fox who stole the staff (who's title I can't remember), and Theta Vraigus, the scaly half of Emiline, and any others we may not have seen. I'm willing to bet that Lucian's idea is mostly correct, that Emiline was always a dragon and is only now showing it. I think the staff belongs to the Naga (who may or may not be the Lady of the Stars) and can control all her minions. Emiline came in contact with the staff somehow, got possessed by Theta because her awesome dragon-ness made her a good target and Julian figured out how to control her using the staff. Emiline's dragon form got corrupted, then the mix of everyone's magic excised the possessive dragon, who then flies off dramatically.
Either that or the egg is connected to Theta, and that's why Emiline called Theta her dark half.
Anyway, that's a very long and disjointed reason for why Emiline is floofy!