Since I am not signing up to be Naraku, one epic villain is more then enough for me. I know that Tailos will survive this encounter with the heros. I think after a little fluff roleplaying, what with Inuyasha making Kagome his mate and so on. Possibly the same might be going on with Sesshomaru and Rin or Hotaru --- seems to be a Love triangle there. Touga will learn what sort of man his father is first hand, and would agree to live with Hotaru as an adopted son. There might be some jewel shard hunting for a bit. But then the Heros will have to deal with Lord Tailos again, and move to intercept him in the process of a whole new mad scheme for world domination.
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Here is my Idea when we get to this point.
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Tailos would have gone to yet another apprentice yokai blacksmith of Totosais, and would have comissioned for a blade to be made for him, this blade is made from his own fang. It amplifies attacks of shadow or Flames or both. But it also has a special ability like all of the other demon fangs in the anime:
Tessiagia = Cuts Energy to create massive offensive attacks / absorbes energy.
Tensaiga = Brings the dead back to life / Heals
Sounga = Opens the Gates to Hell
Hotaru's blade = Disolves Magical energies (correct me if I'm wrong)
Tailos's blade = Opens a Portal through Time --- to the Past, not to the future as the future is not written. A portal or tear through time is a rarely used special ability, it takes months of recooperation before the ability can be used again, and the portal doesn't close behind him but fades away after a few days. (trying to put in as much defects into it to keep it from sounding too Godmodish.
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His 'Mad' Scheme to ensure World Domination:
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1. To get rid of both Inuyasha & Sesshomaru with one stone.
2. To gain possession of their fangs and the Sounga weather as trophies or tools for his power.
3. To ensure rulership over both the Shadow Realm & the entire Western Lands, possibly the southern lands too.
How? By using his fang to travel back in time about 200 years using his fang. Where he would have access to a young Sesshomaru before he inherited Tensaiga. And where he would have access to a pregnant Izaoyi. She wouldn't be very big yet, like 5 weeks pregnant with Inuyasha. He would be able to communicate with his past self, and with Ryukotsusei to plan the end of the white dogs to ensure a new future.
----Flaws to this plan----
1. The portal would still be open to the future / present time and would allow the heros to follow him to the past, but the portal will fade before any of them have a chance to get back home, the bone eaters well might still be there but it is just a well back then. In fact by the end of this scheme the thing that makes the bone eaters well a portal through time are the pieces of Tailos's fang by the end of this, they create the foundation, mix that with years and years of dipositing demon corpses into the well and it become the well that everyone knows today.
----The biggest known threat to Tailos----
Is being in the time when the Dog General, Inu no Taisho still lived and ruled with an iron fist, the demon who possess all three fangs (tessaiga, tensaiga, Sounga) and has an entire nation at his back.