So I've already begun to plan how to redo this story in the form of a soft reboot/sequel that I will do my own way instead of following the Xianxia way completely. This is just an update to know that the story has not been completely abandoned and I intend to follow through with the soft reboot. This is what I've got so far.
-50+ years have passed, creatures and spirits now roam the land because of the Archlich's interference. The Immortals have merged their repsective Immortal Realms with the real world rather than keeping it separate in order to provide people with shelter.
-Sacred/Immortal Grounds are resistant to corruption so far because the Archlich fears them due to having encountered Himiko.
-Demons fear the Archlich as well and have tried to hide their presence, some fail, others succeed by acquiring Divine Energy, resulting in the birth of intelligent yet powerful Demons that are neutral instead of evil. The Archlich itself is a combination of a Demon and an undead.
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-Each of the nine types of energies have become their own school because of the division
-Characters that focus on Divine Energy have become the path of Immortals, while each of the other types have their own equivalents with small differences. For example, Dark Energy is the path of the Demon, resulting in a Demon Lord. Divine Energy is the path of the Immortal, but something like Nature Energy will result in a Demigod that has near absolute control over a single element. Mana types will become Archmages that specialize in elemental shaping. Not sure on the rest yet, but I'm working on it.
-Akiza is on the search for an undiscovered path that unifies all the types of energies, she will be missing for most of the main story, but signs of her work will be seen.
-New main character with a weaker Divine Spirit that was hinted at with a Divine Phoenix, no legendary beast, but probably something like a Divine Raccoon or something silly like that.