Rey’s initial shock at Leia’s death is too important to cut. Her realization that she just inadvertently took advantage of Leia’s death to get a cheap shot in on her son, her tearful little moment with the wounded Kylo. Her decisions to heal Kylo and to go into self-exile both hinge on this moment, because she realizes how dark she just went and that Kylo did in fact still have some good left in him (an idea she mostly abandoned after her failure in TLJ, hence the TLJ callback in this scene with “I did want to take Ben’s hand”).
Keeping Leia alive longer only lessens the impact of her death, and I don’t think it’s worth it just to explain Han’s appearance as a magic trick. If we really want to imply that Leia was directly responsible for Han’s appearance, my recommendation would just be to move the disappearance of Leia’s body to be after Kylo tosses his lightsaber (instead of its original placement after Kylo’s corpse disappears).
Edit: Also, sorry if I’m seeming too much like a downer on these posts. I respect the great work everyone’s putting into these edits. I’m just trying to voice as many potential audience concerns as possible while the edit is still in progress. In the end, of course, this is Hal’s project, so I’ll trust whatever he feels is best. 😃