The Altered Beast is still alive. The Fallen Angel died from a case of trying to defend her heartstone when she should not. I guess those good-mongering habits die hard.
As you may be able to notice, the Altered Beast equipment has lost a lot of its armor and resistance values, and as you probably cannot notice, it has gained in defense, experience multipliers and effect bonuses. Somethings else that needs to be pointed out is that he now regains health and mana as he tears into his victims.
Quite contrary to the way I was imagining him, he is very, very, MUCH TOO VERY careful not to anger any clans, so that they do not come and sneeze at its preeeecioooooous