The Dink Network

The whole idea of Dink telling King Daniel that Milder is dead no matter whether that's the actual truth or not... actually plays very well to the plot and Dink's character. Because, why shouldn't he? Dink wants to become a knight like Milder. Just telling them he killed the ancient one Seth might not have sealed the deal -- after all, they'd let Dink on that Milder has performed numerous knightly deeds of that sort and Milder would still be one step ahead of him. The only way for Dink to outdo Milder is to put him out of the picture completely. Dink might know it's not the truth, but THEY won't be the wiser. (Atleast not for the first minute or two until Milder shows up to ruin the day again, anyway.)

Milder as it happens was very much present and alive throughout the Seth fight (as you argued in the video) and to me it wasn't a question of whether he survived that fight, while barely alive of course, but who could have rescued him? The boat guy? Perhaps Lyna had a thing for him after all, and tailing Dink followed him all the way to the Darklands?

Also I don't have a savegame that far into the game to check if Milder's body is still there after you've talked to Daniel and finished the game, but it would be doubly interesting if it had actually disappeared at that point.

Good video, great fun, more indepth look from many angles into the mystery than episodes #1 and #2 did.