I think it might more poetic to have it go in the direction of number two, seeing as...well, I'll allude to it in the next post, but do know it's going to involve some of the youngsters that didn't make it from the settlement(goodness this is going to get even darker xD)

Yeah, so to Dromund Kaas, Illesia baits them there as you said, they fight, chase her down to the ice moon(Yerbol will LOVE that xD) and have one final confrontation before she goes down 

Hehe...dogs being used as teaching tools. Yesssssss xD