It specifically didn't show lord enorme dying, or any aftermath of her death so I think she may be back later. Sister Gigant showed more general size changing powers by shrinking herself to hide at the end, it is not out of the realm of possibility that she could have done the same with lord...
Damn Leopolt really is a huge idiot, but fortunately Loco Musica is just as much one. A match made in heaven.
Also it seems like Utena is still in Nero Alice's hospital after she leaves and untransforms. So she can presumably trap people in her dollhouses indefinitely if they can't break free...
Nozomi should have been honest with Yume, having to interact with a giant NEET who is drunk all the time is dangerous, atleast have her be sober.
Why does Nozomi so worried about being discovered anyway? It seems like Yume would be fine with her being around.