If Merlyn does die, it will be interesting to see how he goes out. Will it be as a villain, or as someone trying to redeem himself. I imagine his death will be similar to either his supposed death in season 1, or how Tommy died, as the cause of both of their deaths were similar (i.e. them being impaled). A comparison was done with both Merlyn's in the season 1 finale. The manner in which they both died was similar, where they were both impaled, but Malcolm went out trying to kill people, and Tommy went out saving Laurel (this was, of course, taken from the Spider-Man films, where both Osborne's were killed in a similar manner, but both died for different reasons, with one going out a hero, and the other a villain). It would be more interesting if he went out trying to redeem himself, as it would show growth from season 1. If this is the case, hopefully a good reason will be given for him doing this.
Right now, I feel his death will be him trying to redeem himself. While Malcolm has done so many horrible things, he has always being presented as someone with a bit of humanity in him. I always felt they were using both Oliver and Malcolm's costumes to compare both characters in season 1.While there is darkness over Oliver's face, you can still see a lot of his face. I always felt that this was saying that while there is darkness in Oliver, there is also a lot of humanity and good. With Malcolm, a lot of his face is covered by black, but you can see a bit of his face and his eyes. I felt this was saying that there is a lot of darkness in him and he is almost completely consumed by it, but there is still some good and humanity in him.
When I saw Prometheus' costume, I felt they were doing another comparison, but not just with Oliver, but with all three archers. Unlike Oliver and Malcolm, you cannot see any of his face. I feel that this is supposed to mean that Chase/Prometheus has been completely consumed by his mission and darkness, and that there is no good or humanity left (or perhaps this is just me reading too much into nothing

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. Having Malcom die trying to redeem himself would be a nice way to show the difference between two of Oliver's greatest foes, as I cannot imagine Chase ever dying for a good cause.