That was a pretty good ending to the arc. I'm a bit disappointed that the baby dragon didn't join the party and that the mama dragon couldn't even scratch Howzer, but oh well. Edlin going back to being Howzer's apprentice was expected and it means we'll most likely see him again later down the line. Based on the title of the next chapter the gang is going to start crossing the mountains next week. Howzer's warning about Arthur's knights seeking the dragon handle coupled with the suspicious bird at the end pretty much guarantee that they are going to be coming after Percival soon. Logically it would make sense for Howzer to escort Percival to Liones, but that would screw up the power balance of the party. Then again if even Ironside failed to take down Percival it would make sense for the Knights of Chaos to send in a real powerhouse this time. Howzer could be used to keep that guy busy while the rest of the party deal with the weaker enemies.
Percival inheriting the sword handle from Meliodas is a nice touch especially since Meliodas only ever used it when it was broken. It does make Howzer look a little careless though since the handle can apparently turn the tables on the whole war, presumably by sealing Meliodas. It's not something you should leave in the hands of some kids, but it makes for such a nice parallel that I'm willing to overlook it. Even more so if Howzer temporarily joins the party as well. There was that one time when Meliodas used the sword handle to manifest some sort of a ghostly dragon to scare Oslo away which was never explained in any way. Hopefully Percival manages to activate whatever ability that was, presumably something related to the Chaos Dragon that the handle is supposed to represent. Will be interesting to see what happens to Percival's other sword since this one is way more iconic and actually important to the plot.