Well,the reason why they killed airbenrs was because the next avatar would be born into it,the swt [probably nwt in the future] waterbenders was because they pose a major threat in the Nation's conquest,if the militarize and help EK in the war. Azulon was wise in trying to take them down,talk about a preemptive strike. She supports the FN because she was educated from the beggining to be loyal to the FN and to her people [FN,colonials]. and OF COURSE she knows there's a war going on [at least before the Comet's events there was a war] and she's no ignorant. Remember: she's daughter of the mayor,not a brainwashed BSS citizen.