Ok so lots of people have shared their thoughts on the ending, as to why they think it's an open, hopeful and sort of a happy ending. I am sharing what I wrote in my original review. I personally believe this is an open to interpretation ending. There are different theories about what happened to TTJ's soul. His divine wisp is in Ming Ye's scale and whether he can come back or not.

I don’t think TTJ is gone forever, because I think it was only LSS who fully turned into a goddess. Even her phoenix form appeared when she transformed. TTJ became godlike/demigod but I don’t think he fully transformed into a god. So there is a chance he would still come back. LSS also promised she would say everything she wanted to say next time. He did leave his divine wisp in the scale, so he isn’t fully gone. And if he didn’t fully transform into a god, he can reincarnate.  

And even if he  did become a god; I still don’t think he disappeared completely. Although they did say earlier they gods didn’t have souls, when LSS transformed, she did meet Chu Huang and others in another realm outside of the three realms. So there is a place like that where the gods still exists. Who is to say, TJJ won’t find a way to come back? Or LSS won’t find a way to reach that realm? 

Other's have said that his soul is recuperating in the scale. That makes sense as well, because in the last scene we see him inside the scale. So he is definitely there.

Moreover, this is a xianxia where the stories span thousands of years. It all started ten thousand years ago, so why not think this will go on for ten thousand years more? There is no beginning or end. 

So take whatever theory you like, but there is definitely hope here. 

They failed to show that all distress way changed to bring life back.  They cut out the scene showing how all the people that died were restored.  TTJ's soul was also caught in that so his soul did not disappear.  In the novel that's how that happened.  His physical body became demonic veins so that the demons could cultivate without having to harm humans.  This is why demons, humans, and immortals can now live in peace.  Even the director stated about the ending that his body died, but it doesn't mean his immortal spirit disappeared.  So for me it is definitely his soul repairing and he will return.  

He definitely did become a god....he had to otherwise there's no way he could destroy all distress way.  He's still the devil god, he's just not evil and hell bent on destroying the world.  Even when he is reborn as a mortal, he is a demon fetus, so when he regains his memory, he is still the devil god and the monarch of the demon realm.