[quote=Joegreenbeen]
Yeah, maybe the Axolotl and the Iguana are really there just too stop the fighting, and when people think the axolotl is burning things, he is really just banishing them.P.S. Nobody knows about the dogs power, yet...
[/quote]

That's a good plot twist. They decided to work together so they split up, each one keeping an eye on one of the groups and when all of the children are asleep the exchange info with one another so the kids are none the wiser. Maybe they don't want to stop the fighting per say, but the Iguana needs their souls for something. That's why he would be hesitant to let some of them out back into their bodies. It could be for a good cause or maybe not. He might even end up the last boss! lol
But it's hard to imagine everyone getting off so easily. After all, not every death would lead to such a clean body that the soul could simply return to, and if they don't know any better what if they cremate them, and if they do know better then they would cremate their enemies or put them in a position that they couldn't get out of. Like I said, it does rise some potential plot holes. The only way around it is to say they didn't know and lucked out by leaving the bodies around in easily escapable positions, but that also sounds like a plot hole.