"You all have been misled greatly. The demon you see up there is in truth not a demon."
They all looked up. Tetsusaia had fallen into what seemed to be a peaceful sleep! At a time like this?!
"What do you mean, misled?" Inuyasha demanded.
"She's not a demon?" Kagome asked.
The woman bade them be silent. "I am Uranomi. Many years ago, I lived in a village in which I healed many people. Your father, Inuyasha, often visited our village. One day, he met your mother. She became pregnant and your father saw the need to protect her. He had the forger Toutousai create the Tetsusaiga from one of his fangs, along with the Tenseiga, which your brother Sesshomeru now wields. After many years of use, your father saw need for Tetsusaiga's repair and began working on it.
"Deep in the nearby forest, in a glade, your father began to tend to the mighty sword. Your mother sat nearby, looking on in wonderment and happiness as he devoted this time solely to protect her.
"Except one day, a child was drawn into the forest by the noise. She came upon the glade and saw your parents. She was frightened by the demon, and he saw her and threatened her. But as she began to run away, she tripped and fell.
"Your mother was instantly at her side. Wiping away the frightened girl's tears, you mother offered her to stay and watch the beautiful sparks and colors emitted from the steel on stone.
"After many days of watching, the girl grew to love your mother. Thanks to her, she had lived past your father's attack. The truth soon came out. The girl was no more than a wandering orphan. Her parents had died many years earlier from a disease.
"Finally, when the Tetsusaiga was finished, your father wished to make amends, since he had grown to like the girl. He offered her a special gift.
"He offered her the power as the sole guardian of the Tetsusaiga. She would protect it in times of need, and would bear it into battle. Gratefully, the girl accepted. She had no family, no life, and no future. This was an opportunity she could not refuse.
"You father gave her a demon's immortal soul, but she retained her human form. She would age ten times slower than an average human. She was sworn to protect the sword from evil hands. No one could replace her.
"And that is the girl you see before you. Unnamed when your parents found her, your father deemed her 'Tetsusaia' after the blade she was to guard. She is far greater than thou, Inuyasha, and is as strong as the sword she has protected all these decades."
No one would dare mar the mood set by this old woman's story. It all made sense now! She could not bear to leave the sword, so when it went missing, she terrorized the village in suspicion that they had kept it from her. After all, the priests there were strong enough to have taken the sword from anyone.
"But what about Tenseiga? Is there a guardian for it?" Kagome asked of the woman.
"No. There is no need for a guardian, since only a pure-hearted entity can wield it. No evil may touch its true power, so it cannot be misused." The priestess looked up in…sorrow?…at the sleeping girl.
Of course, though Kagome. This priestess probably knew that little girl, and cared for her. She must feel pity for this wandering maiden that none of us could possibly imagine. She loved that little girl and that girl's soul is dead and gone!
There's nothing for this woman to hold onto her memories with. Kagome herself was almost overcome with grief.