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Sorry if this is a bit long, but I thought a more thought-provoking blog would be nice. I'm sure everyone has their own opinions on what exactly happened to Lisa after the events of Silent Hill 1 so let's discuss (forget about the fukuro lady interpretation).
Personally, I prefer to believe that she is trapped in Nowhere with Alessa; watching after her for the rest of eternity. You might think I'm thinking of the whole Red Lady and Alessa scene from the Silent Hill movie, but I think of it more as Lisa taking care of her during her long stay in the hospital because of the burns. Alessa wants someone dearly and she never truly had a mother, so Lisa fills the role.
So what does everyone else think? I'm curious if you agree or thought something else happened.