Hi.
It's too early to make predictions - we can say what we want to happen, or what we think should happen, but the writers are obviously busy subverting, inverting and otherwise playing with tropes so it's pointless trying imo. We can scatter gun possibilities, and maybe one is right, maybe they are all wrong. We will see soon enough.
There is much uncertainty, but the few available leads that obviously need addressing and form the basis of the next season are that:
Bean, Luci and Elfo are all in different places (islands) at the end of season 1:
-Bean is on her way to Maru with her mother to discover her 'destiny'.
-Luci is in a bottle with Big Jo (the mage who wants the pendant) on the mainland.
-Elfo is dead and washes up on what looks like mermaid island.
It is unclear who survived Dreamland, but we know with enough elves blood, key people can be restored if necessary. So there is uncertainty there. We know Zog is not petrified, nor Derek, so we can assume that he is likely to lead the quest to find Oona - and maybe secure Dankmire to help in the quest to rescue Bean. He can unfreeze Sorcerio and Odval and perhaps the Knights to lead the quest.
It is conceivable that the next season is ALL about rescuing Bean, but it could be the other way around: Bean SAVING everyone else from the DARKNESS (as alluded to by the Enchantress - after all, Luci's job was to turn Bean to the darkness, and she might not enjoy it).
We know that at the very least mermaids will make an appearance, along with Elfo, but other species may appear that have or haven't been mentioned - such as the mice.
So based on what we know, we can make loose speculations:
Elfo will be probably brought back to life (Jon Snow/Jesus/chosen one) and want to find Bean (because he loves her) and Luci (because he needs his help). But Luci is in captivity and needs rescuing. So Elfo might go and try and rescue Luci, or team up with team Zog, so they can both go and rescue Bean (Elfo is pretty useless on his own, not "genre savvy", so needs all the help he can get). At some point Elfo may return to Elfwood to find out who his mother is, (and maybe to get more blood for Zog or to trade with Big Jo for Luci?) or he will meet her on his quest to find Bean (maybe she is a mermaid)...I agree with you that Zog's character needs much development - he is far from heroic at the moment.
Bean will likely spend time with her mother figuring out her destiny. At this point it is too early to know a) what her destiny is and b) how she will respond. It could involve ruling all the kingdoms Daenerys (GOT) style, which she either likes, as it gives her power and life meaning - or destroying them, which she hates. She may go with it, or turn against it, and all of Maru. (She will unlikely be indifferent - that would be lame). Her magical powers may activate, and upon becoming very powerful, she has a heroic choice: restore Dreamland and crush Maru, or vice versa. After all - a dark battle of 10,000 years is supposed to be involved....At any rate, Bean's character isn't settled enough to predict with any great accuracy, so we can only speculate about the range of possibilities. It is important to not get attached too much to any of them. It could go either way... (Personally, I think it would be fun if they aged them all a bit each season by 10 -20 years, so as to really make things interesting. Again, a 10,000 year historical conflict is at stake. But this is a preference.)
Overall, I am hoping it will be A LOT funnier, as it is clearly setting itself up to be quite dramatic. A lot of the humour doesn't work on repeat viewings, but the tropes and character arcs are interesting and complex (if flawed at this point). Above all, my attitude is "wait and see": there are many paths it could go down and as I say, it could go either way. The writers could do a great job tying it all together, or they could wreck it. There in lies a lot of the jeopardy - and excitement. Will it be worthy of being heralded as 'great' in years to come or merely 'meh'.
HC