I think that you need to simplify things here. The film explores the beauty of the moments in life. Even the plastic bag in the wind is beautiful. Colonel Fitts is a closet homosexual. He loathes himself. When he is aroused by Lester, he lashes out at what he hates in himself hence he kills Lester. I don't think that's beautiful but by this point Lester is enlightened. The end of his life, not the shooting, is beauty in its own way (there is a faint smile on Lester's face). We tent to attach a value system to beauty that is superficial. Really what is beautiful are the small, sometimes still moments in our life. If you watch the end of the movie again, with Lester's monologue, it will all make sense. I think his narration is beautiful. I'm not sure what Carolyn intended to do. I really don't think Carolyn knew what she intended to do. After Lester's death, during the montage, we see her break down smelling his clothes.