I won't disagree with your argument since you put it so well and with so much to back it up. You actually made me feel like something of an ignoramus. Anyway, I won't argue with you, but I can understand where an assumption about the deaths of the fallen lords can come from. Their title alone, "the Fallen Lords", while possibly meaning a sort of spiritual or moral falling, is most quickly associated with death (especially when you're talking about war). While evidence is thin that they died, it's easy to assume that "fallen" refers to physical death. Also, they could be considered deceased by association. With such massive legions of the walking dead, it's easy to imagine these less than attractive generals also having spent a few years in the cold earth. I personally hold to the opinion (not proven fact) that they are dead and hope someone can provide a good argument to back this. I know I can't.
"...and their right hands were raised in menace against mankind." sieg zeon