I followed some of this series, and now plan to read the issues I missed. I also don't know what the canon of this story is.
Long story short, Karnilla has attained a Norn Stone and has become all-powerful. Powerful enough to 'challenge Odin himself for supremacy of the Nine Worlds'.
Powerful enough that she can flick the Hulk like a gnat and defy the sorcery of Dr. Strange, and withstand a double-team punch to the face by Hulk and Ikaris.
Finally she employs 'my theory' of boosting her physical form to increase her power even further. The outcome seems inevitable until Zuras appears (in gigantic form) to restrain her.
Karnilla is impressed, but says that Zuras is exhausting himself by assuming this level of power. Zuras admits that he cannot defeat her, but then introduces Odin (in even gigantic-er form) who claims that her power is not as supreme as she thinks, promptly shuts her down, and destroys the empowering gem.
This story was quite well done, even though it was mostly a slug fest. And while some may consider Peter David a bit out-dated, I would welcome a Thor run from him. I actually took the handle 'Norvell' based on his depiction of the character in his Hulk run.
He's an excellent writer. One of Marvel's best and even though he's the best hulk writer ever he was always pretty respectful of Thor. Contrast the poor treatment done by ewing.