I feel like we deserve a better ending even tho its a happy ending but I was expecting more... plus the boat scene?!?…
I think the lovey dovey scenes before the big fight was to appease us on the ending that we got. We saw them playing together, cooking together and simply interacting as a couple. I think it was set up that way because they would not give us much of an exposition at the ending. I agree with you.
MiaoLuo is using a projection to enter the dream, it isn't her real body. So naturally, she won't be replacing…
Miao Luo when trying to to take Fenjui's body stated that some of her powers have been sealed in Fenjui and she was taking it back. I guess this is the explanation for Fenjui's birthmark?