It is possible it's a faked death so the Monetarists could be unhindered in their control over Ul'dah. They blame the Scions/Raubahn for attempting to ursurp the throne in an attempt to cause civil war/unrest. Anyway, I doubt Ul'dah will be stable even after this turn of events. I could see Ul'dah going into civil war with Crystal Braves/Bass Blades against Immortal Flames. Even though one was a traitor, the others would be loyal to their leader.
The only way that we'd believe her to be truly dead is get a cut scene later of her funeral open casket with flowers around her body. The sultana deserves a funeral so grandiose that everyone would have to attend, even if the one watching is covered in a robe or using a glamour prism to hide their identity. Sadly some people would think "Hey, maybe it was a body double." We'd probably need a literal quote from a developer that "She is Dead or Alive" for the community to settle down.

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