I'm thinking this: Peachblossom, upset by all the carnage, gives herself up. The Easterlings discontinue the fighting and leave with the Entwife. Our good guys continue fighting and try to prevent the Easterlings from taking Peachblossom, but are unsuccessful.
As for who dies: I believe Endereth and Anarya are the only two good guys who should die. Radagast cannot die really, and Mattius has returned to the BD, and though I'm still not sure if he'll continue the RPG with us, we should still leave his character open.
When it comes to the Easterling party, a good portion of them should die; maybe 10-12 of them. Of course, most of these are NPCs.
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Nolite te bastardes carborundorum
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