Shyamalan plot twist: After the heart attack caused by Iwanako's confession, Hisao slips into a coma. Yamaku is a dream, and this scene is the last playing through his head when his heart finally gives out, hence the fading.
The other part of that Shyamalan twist is attempting to adapt a widely popular cartoon series into a feature film by taking a complete shit on everything that made the cartoon good.
@26237: Actually, since both Hisao AND Emi are disappearing, they are both in the past, and something they've done must eventually result in the two of them not being born.
"Emi! Gimme one last BJ before we disappear!"
"Hisao, shouldn't we try to fi-mghpf"
CID 26173, posted on February 4, 2011:
fapfapfap