I found it really odd that Azula's mental condition would just "disappear" after she found her "destiny". Mental illnesses don't go away easily, much less in a few months. I personally theorize that she must have gotten her hands on Avatar's verison of medication pills, some herbs or something such that calm down her symptons. Apparently, Azula managed to befriend some of the mental patients at the mental asylum. But they seem pretty sane from the scenes we see of them in Smoke & Shadow. That's really strange. Let's say I were to believe that Azula cured her mental illness through finding her destiny. What about the others? They were put in the mental asylum for a reason. They seem so normal and calm, though. I also find it quite eerie when Azula said to Zuko "But eventually, you will become just like me". Just like me as in just as ruthless and intimidating? Or just like me as in just as bakstabbed and mentally ill? I always suspected that Azula's loathed Zuko for putting her in that looney bin and it felt confirmed after she described it as "that horrible institution". Either way, I just have a really hard to believing that she only wants Zuko to rule through fear. To be the Fire Lord she thought she was meant to be. What's she to gain from all this? The Azula that we all know never does anything unless she it benefits her for her endless quest to achieve power or amuses her. I do believe that she really did give up on her quest for the throne, but not for the reasons she said. Dear god, Smoke & Shadow Part 3 left me with more questions than answers.