I have just finished watching Princess Mononoke once again. The end of the movie seems very confusing to me.
The spirit of the forest, while still in night walker form, obtains its severed head but at the same time, before it can convert back to a deer, the sun comes out (which according to Jiko-bo kills it). To me that should mean he died and San thinks so too when she says this new forest does not belong to the spirit of the forest (Who does it belong to? Humans?). Then Ashitaka says the spirit of the forest (for some unexplained reason) is alive and I see everything going back to green and a Kodama moving its creepy little head. Does this mean Ashitaka is right?