Arden begs her to wait, says she was right about him not believing in God. He does believe in evil, though. "I've seen it, up close and personal," She's all, "I bet you have, Herr Grouper." He says that's why Eunice's "purity" meant so much to him. Yeah, I'm betting that's not the only reason why, but go on. He laments the light having gone out inside her. He actually starts begging Sister Jude for help. Says "please" and everything. Sister Jude makes it clear that she's doing this for Eunice and not him, then instructs him to follow every instruction of hers, no questions asked. She should've started by making him write out his full Nazi confession.
Later, at Briarcliff, all the patients are gathered together for the ceremonial placing of the star atop the Christmas tree. Monsignor Howard is here to do the honors, and when he produces the star ... you guys. This thing is made of crystal (>Saboski crystals?) and has like SIX DOZEN points on it, each one a tantalizing murder weapon. What a perfect ornament for a tree in a hospital for the criminally insane! Sister Eunice gets a pass for being the devil and all, and Dr. Arden Don't Give a Fuck could be a t-shirt slogan at this point, so I'm heaping all the stupidity for this decision on Monsignor Howard's moronic shoulders. "Hey, watch as I hang the ceremonial ninja death star atop our murder tree!"
Howard praises Sister Eunice for her inventiveness with the decorations on the tree, even comparing it to "found-object art," the dummy. He tells her it's just what's been missing around here. He says he was a bit wary of her decision to let Leigh Emerson participate in the holiday festivities, but as he looks across the room at Leigh, in the Santa suit, with an inmate sitting contentedly on his lap, he declares Leigh a "a renewed soul." THIS GUY. As if only to prove Howard's stupidity, we cut over to Leigh, who is whispering to the young woman on his lap, "Why don't we savage a few people and then go suck on each other?" Yeah, a Christmas miracle, this guy is.
Howard then goes to make peace with Dr. Arden after their period of unpleasantness. He wants to celebrate the transition to this new era of Briarcliff. Across the room, Eunice calls Frank over to help her hang the star, while some orderlies wheel in a TV. Eunice happily tells the Monsignor that she is going to show the patients "Rudolph the Red-Nosed Reindeer" tonight. "What a treat," Howard declares. Well, he can't be wrong all the time.