Actually, I think he's amused by Ezlo. He turned his master, who didn't have enough faith in his powers to let him do anything(or so I like to believe, anyways), so he stole the magic cap, made his master a hat, and now he's proving his power and worth, and getting more. All the while, his old master is a HAT. And he might also be a bird. Logic.
Ah, who knows why he's smiling?
GHIRAHIM MY MUFIFNY MUFFIN! :bleh: