I get that the AP is old news now, but I'm just getting around to reading it now, as I was considering running it. I was really baffled by this scene too, as it seemed very out of character from her writeups in other supplements. Anyways;
I have read this thread, and I get that the scene really did not come across as intended. But it is what it is.
I just had an amusing thought for a followup to WotR. The WotR party are a bunch of Clerics & Warpriests & Priests of other gods. They're of mixed alignments, all non evil; but none of them worship Iomedae. They've redeemed several of the demons thus far, and have decided that's their official policy - no conflict needed.
They don't do well with the questions. They are blasted, but cooperate. At least one of them dies. Upon being released; they all tell their gods of what happened.
Suddenly the Paladin God (who just broke two parts of the paladin code, what with the kidnapping and assaulting of her allies' worshippers - both not respecting their rightful authority over their worshippers AND dishonorably betraying her allies), is on the outs with possibly 4-8 (probably 5) other gods.
After finishing the worldwound plot; the party turns their focus to deposing the Mad Tyrant Paladin Iomedae, and lead a holy war against her. Maybe some of the redeemed-demons (redeemons) join the cause. New campaign starts with old PCs as leading NPCs.