Does this implies that Zuko's mother??is dead or that she was unaware of what was going on? I like to think that she was living a dream, thinking that what the fire nation was doing was for a good cause and not as evil as they actually was. That make more since to me than her being dead, unless she sacrifice herself for Zuko once she learned that her husband was supposed to kill him. Or maybe she killed Lord Azulon and allowed Ozai to kill her or get rid of her so the death of his father and his son wouldn't be on his hands! What's going on...
And how bout what the other dragon was saying "No open your eyes". It could have ment stay alive but it too could have ment see what's really going on! Don't be fooled by your drerams.