Continuity mistake: Before Edward is looking at the family pictures you can see some scars on his face are open, when the camera focuses back on him the scars are closed.
Edward kills Jim after Edward sees him hurt Kim. He and Kim know that if he goes back to Suburbia they'll kill him, so they kiss, she tells him she loves him, and she leaves him in his mansion. They never see each other again. It turns out the old woman narrating the story is Kim, telling the story of Edward to her granddaughter, and that he is the reason that snow falls from the sky from then on, because he's making ice sculptures.
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