Renewing her life in this form certainly encouraged the dragon-worshiping citizens of Heavenly Island to respect her more than they did her earlier forms. Unfortunately, becoming a dragon didn't give her any insight into the ancient dragon's knowledge of the universe. Funny how a mortal species knows more about the universe than its protectors.

In an alternate reality (or perhaps even in a far earlier or later point in time), she abandoned her draconic allies and tried to guide the island through the unknown without their much needed assistance. This eventually lead to the destruction of the island. Perhaps a better outcome than what really happens.