That's a big nest! The eggs are really tiny and almost look like some of the tiny bubbles that he's made. If she was enlarged from eggs, then yes, she will get smaller after laying eggs. You can certainly take part of the nest out and see if anything hatches. Some males will protect the eggs and newborns while others eat them. Most females eat the eggs and fry. You could also remove the parents and leave the nest with any possible eggs or fry in that tank.
Did you see the huge paradise fish thread (topic) in this section? I pinned it at the top. In that thread, many people talk about their paradise fish breeding and raising fry. They have more experience than I do. The thread is old but the information sitll holds.
My paradise fish page is at
http://www.fishpondinfo.com/parad.htmGood luck!