So that would fit the idea that she's an example to Angel of what happens when you don't adapt, which makes his action at the end of the episode, deciding to play W&H's game, more comprehensible as well.

Did you see that final scene as Angel deciding to play W&H's game? Because I'm convinced he's going to lock that door behind him and then scatter bits of Brethren all over the office. I totally took that line about 'serving our clients' to mean that he was going back to serving his *real* clients, the helpless, not making money for W&H. But then I also thought Angel took Illyria's words about not compromising very much to heart and decided yeah, I'm through serving any master but my own ambition, let's go out and help some hopeless!