You would also think Anduin and other characters would express even more anger and grief if that were the case. "My father's soul got destroyed!" is far worse than simply 'my father is dead!" and no one in-game or in-novel have mentioned Varian's soul being destroyed, just that he was killed.
Why does he have a compass with a picture of himself in it lmao
Maybe this will lead into accessory slots? A new feature or expansion thing. Visible accessories, personal items, keepsakes, profession items, meaningful objects, decoration on our gear, ornaments, adornments, belongings, etc. Accessories we can attach to our bodies/gear. to further personalize and customize our characters' stories. Can transmog/equip/attach to belt/waist slot (potion bottles, books, compass, etc), cloak/back slot (wings, quiver, duffle bag, brew keg, etc), wrist/wrist slot (bracelets, charms, etc), face/head slot (glasses, eyepatch monocle, etc), and maybe neck/necks slot (necklaces, chains, charms, etc).