Girls no. The Freak Show is just like The Murder House, souls that died there stayed there. Mordrake realized that Elsa didn't deserve to go to hell, so he transported her soul to the Freak Show.
Beautiful Ending. And there's a reason we didn't see Dell, Stanley or Maggie. They weren't freaks and they're paying for their sins.
So
-Dandy goes on a killing spree and kills most of the freaks
-Bette & Dot & Desiree play Dandy so they kill him
-Elsa becomes a star for 2 seconds then has to perform on Halloween for some reason (still not sure why she changed her mind?) and Edward Mordrake kills her, and she's in the freakshow with the rest of the freaks for eternity?
She changed her mind cuz her past came back to haunt her. They found the snuff film, then they exposed her for running a freak show, and so she knew her career (and, essentially, her life) was over so she knew if she performed on Halloween, Edward would kill her.