To answer, yes and yes. She's intent on taking over both sides of the river. Her tree is weakened by its entrapment within the "foreign religion's fence", but she's already figured out that she can save herself by becoming an idol (perhaps even driving away the incursion). Since Nagi's tree was cut down (and originally they were "one"), I speculate that Zange just figures that "older sister" Nagi will fade away and then Zange can inevitably be the sole deity of the land.
Nagi has been sleeping too long .... we'll see if she can make up the disadvantage.
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