Now what I don't like is the whole "de-powered" thing. Now if Evil-lyn had somehow artificially increased her power through some kind of artifact or something I am ok with that. I have a feeling that this is a black and white all or nothing situation and that she is left "depowered" which equals normal.
What I would prefer is the following: After years of study combined with natural aptitude, Evil-Lyn is a powerful sorceress/witch/whatever. At some point she artifically increases her power (gaining yellow skin as a side effect) due to a magical talisman/artifact/plot device. What Teela does is cancel the effects of that artifact (reverting her to her normal skin color) and removing the power boost. She is left with her "pre-artifact" power levels, which are still considerable (essentially 200X ability levels).
With the forces of evil defeated and Skeletor departing on his own, she takes advantage of the closing moments to slip away to the future to not only raise her son but also out of self preservation.
That works for me anyway Also at some point her and Crita have a wrestling match involving pudding.