Pretty good chapter, much better than the first. The fake prophet got dethroned and showed for what he was. The part where Rose broke and asked Ed what is she supposed to believe in now, and Ed told her to find the answer herself; was pretty strong. Also two new big bads showed up, and were named over the seven dedly sins, there was also a guy named Father, that Lust said she had to report to. Anyway, Lust killed Cornello, and Gluttony ate him, wow. I'm kinda hyped for the next chapter!
I also like the concept of the magic system here, aka Alchemy. It has set up limitations, and that may work pretty well!