Theory: Winged Lion is freed and asks what Laius desires. Laius thinks for a bit and then says "nothing." He's saved Farlyn, he's had fun adventuring with his friends, he doesn't really want the responsibility of running a country, and his dream of turning into a monster isn't as cracked up as he made it out to be.
The lion asks him to reconsider. Laius thinks some more, and says... "I wanna find out how demon tastes like."
Cue epic final battle, then they eat it.