Seems to have been awhile since this one was posted, but then I realized that you've beaten me up three times now and I haven't gotten to throw any punches of my own. How sad.
I read both of them. Yeah, mostly because I apparently can't read (oh the irony). So I'm going to give you the lowdown on both of them, but will focus more on the new one.
My first continuity issue was with the shank. Where'd it go? Did she put it back down her shirt, or did she hold on to it? If it's the latter, she probably would have dropped it when she slipped, but running with shanks is bad. If it's the former, I'd be worried about it stabbing her when she fell. Either way, it's not a pretty thing to have with her when she falls.
One big issue I notice is that you like to start sentences with "As" a lot. It gets a little repetitive after awhile seeing "As <noun/pronoun> <verb> <adverb> to the <noun>..." 3 on page 4 and 2 on page 5 and 6... then it goes away for awhile, then comes back again toward the end. These are nitpicky details, but they stand out in my OCD brain. Just thought I'd let you know.
Regarding BalKon (and yes, I like his new name better): I'm not sure I really understand *why* he fostered her. Perhaps you don't mean to show me, but to me, it feels like a disconnect. In the old version, it was because his father had been his last Foster... that made sense. Now... not so much. Their relationship makes for a lot more tension, but I still have to question his original motives.
Jazua... I liked him a lot better in the first draft. In that one, he feels like more of a family figure... he's a leader, but he cares. He also played with Phay's mind. In the second draft, he's more a cold dictator. I find that I don't really care about him as much.
In the first draft, Porish seemed too nice. His conversations were quite awkward, so with him I like the new version of him as a jerk a lot better.
I will agree that their new powers make them a lot more competitive against the Heat-touched. However, I feel that the backlash of power feels a little Sword of Truth-y. That's the first thing that came to my mind when I read it. Especially the part about how the first time was the worst. "Say Richard, go cut down that tree," I remember. It's probably fine, but I wanted to bring it to your attention. The old way reminded me of Atium shadows, though... so yeah.
I'll agree with Asmodemon about how BalKon reacts when she flows into the blade. He knew she was there, and he knows about the misdirection, so that kind of trick really shouldn't work on him at that time. And yet, it apparently does, to the extent that he acts surprised. Did he just randomly forget where he was? Or does this power grant amnesia to the beholder?
The Jagermots make for a much better battle than the quest to retrieve the escaped prince; I certainly liked it a lot better. I also liked how you found out about the weak spot of them from the connection. However, I have to ask, is this
really the first time that someone's managed to connect with them without them exploding in their face? Why didn't someone connect with the one sitting in the lab? BalKon knew it was there (at some point), so why didn't he? It seems a little too convenient that our main character just happens to find the weak spot to the enemy in the nick of time.
Another thing I like (backing up a bit) is how you reveal her past. BalKon saw it, and just blurts it out to Jazua. Normally, I'd consider that very telly, but in this case it works really well. And you keep it short, so it isn't dragging on. Bravo.
Also, the ending was kinda ruined for me because I found a very big flaw with their reasoning. "You would commit treason? Seal your fate with ours?" Well, no, not really, I think. I'm going to show you how you can beat them, so you can just kill the one you're harboring in your basement and you'll never have to worry about someone accusing you of having one anymore. On the plus side, you now know exactly how to kill them, you can win the war, and if anyone asks how you learned, you just say you found out on the battlefield. Tada! To me, that'd be a darn good way to get
out of the Sun Guard. Now I just have to deal with this big lizard-goat-thing that's going to follow me around for the rest of my life. Oh well, at least we don't hate each other now.
Compared to the old one, this new one screams of "This crap just got SERIOUS". Gone is a lot of the whimsical natures, the kinda cheesy magic and traps, etc. Instead it's a lot more gritty, real. I think that works a lot better, but at the same time, it loses something. The people are less human. Sure, I suppose war does that, but Phay's not a soldier. She's just another victim of the school of hard knocks. Perhaps this is what Silk is getting at. There's a lot less emotion spread throughout.
At any rate, I do think this could be a good setting for a full novel. However, this piece as it stands would not really work well in that novel. You'd have to break apart, expand, and fill in on both sides in order for it to work, I think. Still, some pretty good writing.