Irene was low-diff team Erza/Wendy and was toying at them until Wendy reversed Enchants and regained her body. After Wendy fell, Erza was more in fight condition than before and had not the choice to loose, because if she loosed, Irene would take defensless Wendy's body. So Erza fulled into her emotional powers to reduced the gap but couldn't match Irene's power and dealt her damage. Her resolution put her above the Erza who's fighting Laxus, who is not her ennemi, and where life is not in Balance. Angry, Irene turned into a Dragon and broke nearly all Erza's bones in a single slap and managed to kill everyone on the Continent with a crazy amped Deus Sema. As Erza's mood to save everyone, Erza fulled into all her emotional powers (like did Natsu to obliterate Fairy Heart Zeleph) to transformed her into Kamikaze for her people safe. Her powers skyrocked and this Erza is by far beyond Laxus's and Erza's opposition, like Natsu's vs Zeleph was crazy stronger than a classical Dragon King Natsu, exploded the meteor and slashed through Irene'scales. But Irene could continue while Erza was clearly off, no mobility and no Magic. She could kill her if her heart was not in contradiction of her mind, the same way as your Laxus was using Fairy Law during Fantasia. Because she loved her daughter, her powers were inconsciously restrained.
You can't compare a full Emotional power Erza with an Erza who is fighting a friend. It is the same way as saiying that Natsu fighting Gajeel is on the same level than Natsu's fighting Fairy Heart Zeleph who wanted to erase the world and Natsu's family.
But this power level can only used under circonstances than put Life's Friends or family in Balance.
For now, Erza and Laxus are strong, but way less as strong as Irene and August. These two were the strongest human wizards in the Manga, until now, if we considered Irene as a wizard, which she was not but on superior level as a Dragon.
Laxus and Erza reduced the gap, I agree and they will continue until perhaps going stronger, but they have still a long way to reach that power level.
You can't compare a full Emotional power Erza with an Erza who is fighting a friend. It is the same way as saiying that Natsu fighting Gajeel is on the same level than Natsu's fighting Fairy Heart Zeleph who wanted to erase the world and Natsu's family.
But this power level can only used under circonstances than put Life's Friends or family in Balance.
For now, Erza and Laxus are strong, but way less as strong as Irene and August. These two were the strongest human wizards in the Manga, until now, if we considered Irene as a wizard, which she was not but on superior level as a Dragon.
Laxus and Erza reduced the gap, I agree and they will continue until perhaps going stronger, but they have still a long way to reach that power level.
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There's a difference as it is noted when some gets enchanted to make the difference. I can for sure compare Dragonizied Nebal bcs Nebal beat the crap out of Wendy B who beat the crap out of Erza who is equal to Laxus. She did go for an all out strike and got sent packing. Irene then was toying with her after that and it's not like Irene had any trouble keeping up with Erza. But Ajeel isn't top 3 S12 lol. I'm just saying, you said she is miles above the S12 and she is really not as shown in her fight against Ajeel. There are other S12s besides Ajeel who can finish the fight in one blow against Erza. The S12 are still up there in power scaling.