After making the cure, the alchemist asks if you are ready to head to the village to test it. The village is not wiped out until after you go to the Shaman's cave and he teleports you away.
The DK could have suggested taking care of any unfinished business with the imps first, in case the alchemist made things worse. The alchemist could have warned that if the cure failed you would be shunned by the imps, assuming you were not arrested as his accomplices.
