Yes, rest is a given for the PCs and NPCs. The bad guys dealt a lot of damage and spells must be recovered. A full days rest is required for new class abilities to become active, IMO. It really should be longer.
As well, the identification of the magic items takes a while depending on how many
identify spells can be cast by the PCs and/or NPCs. Yes, I am willing to let you guys know what you have
out of game, but that won't mean the PCs can just begin using the items carte blanche
in game without magically
identifying them. (I'm not going to be a hard a$$ about it, but there should be a reasonable amount of time that passes for the identification of the items. There is a lot of power and wealth in those items.)
The potions and
Azurak don't need to be identified this way. Potions can be identified using Spellcraft (rolls not required) and Angus became aware of Azurak's powers the moment he picked up the great mace.
Identify requires
"a pearl of at least 100 gp value, crushed and stirred into wine with an owl feather; the infusion must be drunk prior to spellcasting." I forgot that when I had Ailward cast
identify on the other items that the PCs captured on the island. He does not have the Eschew Materials feat but that doesn't matter for the required pearls.
Note, Ailward can cast
identify up to 6 times per day, but he has no pearls left.
Scarborax does not know
identify or have any pearls to give the PCs.
While the PCs have a lot of gems (minus the gem Maur used for
celestial brilliance), only one of them is a pearl (and is only worth 11 gp). You can have them take their gems (or other items) to Belporte and trade them for pearls, but doing that could draw unwanted attention. News/rumors will spread that the PCs are looking for pearls and most arcanists who hear about them hunting for pearls will figure out why. Canny thieves might also come looking for them if they think the PCs are flush with wealth and magic items. (The PCs don't have to worry about that in Carnell; they are considered beloved heroes in the village now.)
The PCs are near the sea, so they could go hunting for pearls on their own but that idea comes with its own risks. The local fishers would know the best places to search and they could help try to find pearls, but it will take time and a lot of work. The PCs will have to compensate them.
Phar can cast
identify as well. He could cast it up to 6 times per day, as well, if he only uses 1st-level spell slots. He can choose to memorize the spell with all his higher level spell slots, which means that with enough pearls (and wine) he could
identify most of the important items in one day. If
@Scotley chooses to do this then Phar will need another day to re-relearn his spells (and recover from drinking so much wine).
In his current state, Galzadar isn't inclined to tell you anything about his magic items. Eutharic is willing to help tell the PCs about any items that don't belong to his master, but he can't magically
identify anything for the PCs.
(Thus, the PCs will have a general idea of what each item can do and what might be useful to them. Eutharic only knows the command word for the wand of cat's grace. Like I said, I'm not going to be a hard a$$ about it.)
Phar doesn't need to cast
identify to be able to know that Galzadar's spellbook is a
Boccob's blessed book. That is obvious just by looking at it. He will have to use
read magic to learn/copy any spells from it, however.
Trial and error will also tell the PCs that the Confessor's javelin cannot be used by anyone lawfully inclined and that his warhammer is unholy.
It might be easier to try to find an arcanist who can craft the PCs a
wand of identify, or they can try to find one to buy. Carnell is too small a community to have such an item for sale. Neither Ailward nor Scarborax can craft wands and Phar doesn't have that feat either.
