Yes, Clod is Arsteel, in case you were wondering. After Vasher killed him, Denth's team decided to have him made into a Lifeless. Partially because Denth was curious if it was possible, and partially because Arsteel was such a capable warrior that they knew he'd make for an excellently skilled Lifeless. It isn't as good as having Arsteel himself, of course, but Clod is probably the greatest Lifeless swordfighter in existence right now in the entire world.

Another tidbit that never comes up is that Jewels was in love with Arsteel, which is the primary reason she joined Denth's team in the first place. Arsteel joined it because he wanted to try to redeem Denth; he felt that a reconciliation between Denth and Vasher was possible, and as a peacemaker, he thought he might be able to make it happen. As for why Vasher killed him . . . well, I'm afraid that's another story that will have to wait for the sequel.

Jewels is still in love with him. And yes, she still sleeps with him on occasion. And yes, she's a little bit unhinged emotionally and mentally because of his death.