Now, I didn’t originally think of this, but it made a lot of sense to me when I pieced the puzzle together with the help of /a/nons’ perceptions.
My take is that Lelouch is alive.
The most obvious reason would be CC calling to Lelouch in the closing scene of the episode. As we can assume CC to be still sane, she must be talking to someone, and that someone would most probably be the driver of the cart: Lelouch would have to be alive.
Second, however, and this is where the others have thought things through, Lelouch is alive because he got his dad’s code. He beckoned the World of C to lend him its powers, and he took Charles’s code before Charles passed on. The reason why Lelouch still has his Geass is because he didn’t take the Code from the same person who gave him his Geass: he took his Geass from CC, and he took his Code from Charles. Thus, he now possesses both immortality and a Geass. This is also a reason that the title is Code Geass: Lelouch of the Rebellion.
To further corroborate this, however, remember that when Nunnally held Lelouch’s hand he transferred his memories to her. CC also did it when Lelouch touched her accidentally back then, so it could be assumed that people with Codes are indeliberate telepaths. This leaves us with both immortals traversing the world for the rest of eternity.
It’s a great end, friends.
P.S. Ending line of CC translated by bibi: “Geass is the power of kings, it will isolate you… well, I guess thats a little wrong… eh, Lelouch”
P.P.S. Additional evidence, courtesy of `Nergal and 4chan:
1. Charles grabbed Lelouch with his right hand, which had the Geass sigil.
2. Lelouch needed the fully evolved Geass to transfer a code.
3. The code doesn’t appear to activate until someone dies. Hence, why C.C. was wounded when she first inherited her code. Same happened with Charles in the World of C.
4. When Lelouch touched Nunnally, Nunnally got a flash of his memories. This ONLY happens when a high potential Geass user touches someone with the fully evolved Geass.
5. The title of the series is “R2″, which is similar to how “C.C” is pronounced. So Lelouch would be “R.R.” which is Engrish (I presume) for L.L., Lelouch Lamprouge.
6. When C.C. is talking on the wagon, she says “the power of Geass brings loneliness…that’s not quite right is it, Lelouch?” and nods her head in the direction of the wagon driver.
P.P.P.S More evidence, courtesy of an intelligent anon from 4chan:
Orange knew of Lelouche’s and Suzaku’s plan and helped them out by ordering his men not to fire on Zero, he even smiled when Zerozaku jumped on his shoulder.
Now would Orange, a man who devoted himself entirely to Lelouche and threw away everything without a second thought be OK with a plan where the sole person he wants to protect in life is actually killed? The answer to that is NO, not even if Lelouche ordered him to accept the plan: he would not go along with it and would protect him with his life. There is only one way that Orange would be OK with a plan like that and thats if he knew about Lelouche’s immortality, which I assume he did as he worked with V.V. in the Geass research base. Orange was OK with this plan as he knew Lelouche would come to no harm and would be able to start a new peaceful life with the woman he loves in a world which he himself had made peaceful.
Even at the end, we see Orange on his orange plantation, completely content with the way things have panned out, he definitely could not be that happy had Lelouche actually died.
There it is, firm evidence of Lelouche’s immortality if the scene with C.C. and the cart driver wasn’t painfully obvious enough.
(I corrected a few spelling errors and run-ons, but preserved the original thought. It’s also quite convincing, if you ask me.)