Wow, a very entertaining and informative episode.
Spoiler for Episode 80:
So my assumptions about Lucy her celestrial magic is correct; however, I hope they will explain it next episode. It also looks like Natsu and Wendy will learn how to use their magic next episode as well.
As for Gajeel, since he still is hard as steel, I bet he has already figured out how to use his Dragon Slayer magic.
Since magic is used through objects in Edolas, it would seem that the magicians of Earthland can wipe out the ones in Edolas with ease if they can use their magic (i.e. Earthland Lucy easily handling those knights, while Scary, er I mean Edolas, Lucy was more intent on hiding).
An Erza vs. Erza battle would be awesome.
Also, since it did not look like any of the Exceed were in the kingdom, where are they then? Why are they so feared? Are they with the kingdom or against the kingdom?
Also, Carla mentioned before that Anima was after Fairy Tail because she and Happy were there. I kept assuming that Exceed and the kingdom were together, but now I am not so sure. Could Exceed be special beings that carry magic within themselves and not use magical objects like others on Edolas? Hence, they are feared so much?
Also, what are Exceed's goals then?
So many new questions when one or two is just answered. This is becoming a very exciting arc indeed.