All the characters are happy now that story three is progressing and they each have their own storylines. ...well, they're all happy except Avon and Vila.
Vila doesn't get to be happy because he's been causing so much trouble; but he gets to rescue Avon later...so he shouldn't complain...well at least that's the plan.
As for poor Avon...unfortunately for him, Servalan and the psychostrategist have taken over there.