We pass priority as well, so damage resolves. We take three, the Kami dies, and your Chameleon has two damage.
Its your post-wombat main-sleaze.
Flying White (25)
Limited's library: 40
Oversoul's library: 39
Limited's hand: 6
Oversoul's hand: 7
Limited's in-play:
(UUTTT) 5x Plains
(T) Marble Diamond (tap to add W)
(T) Marble Diamond (tap to add W)
Empyrial Armor [Enchanted creature gets +X/+X, where X is the number of cards in my hand]
(U) Kami of Ancient Law (2/2 sac: destroy target enchantment)
(PO) Phantom Nomad (0/0, 2 +1/+1 counters, when it takes damage, remove a counter instead) *6/6* *Empyrialed*
(U) Tallowisp (1/3) [Spiritcraft - Search your library for an Enchant Creature and put it in your hand]
Oversoul's in-play:
(UUUTT) 5x Plains
(U) Beacon Hawk (1/1 flying When ~ deals combat damage to an player, untap target creature. W: +0/+1 ueot)
(U) Welkin Hawk (1/1 flying when it dies, search another one)
Limited's graveyard: Lantern Kami, Bathe in Light, Tallowisp, Kami of Ancient Law
Oversoul's graveyard: Suntail Hawk, Suntail Hawk, Welkin Hawk, Lieutenant Kirtar, Commander Eesha, Skyshroud Falcon, Skyshroud Falcon, Courier Hawk, Courier Hawk
Limited's RFG: Kor Haven
Oversoul's RFG: Courier Hawk
Now-You-See-Me-Now-You-Don't (38)
Spiderman's library: 36
Darthferret's library: 38
Spiderman's hand: 5
Darthferret's hand: 4
Spiderman's in-play:
(U,U,U,U,U,U) Island x6
(U) Thawing Glaciers
(U) Mistform Warchief Type-Illusion (1/3, creature spells you play that share a creature type with ~ costs 1 less to play. T: ~'s type becomes the creature type of your choice ueot)
(T) Chameleon Spirit (8/8, as ~ CIP, choose a color. ~'s power & toughness are each equal to the number of permanents of the chosen color your opponent's control)
(U) Mistform Warchief Type-Illusion (1/3, creature spells you play that share a creature type with ~ costs 1 less to play. T: ~'s type becomes the creature type of your choice ueot)
(U) Vodalian Illusionist (2/2, UU, T: Target creature phases out)
(T) Zephid (3/4, flying, ~ can't be the target of spells or abilities)
Darthferret's in-play:
(UUUUUU) Island x6
(UU) Island of Wak-Wak x2 (T: power of target flying creature becomes 0 ueot)
(U) Wall of Air (1/5, defender, flying)
(U) Wall of Air (1/5, defender, flying)
(U) Stinging Barrier (0/4, defender, U, T: ~ deals 1 dmg to target creature or player)
(U) Fog Bank (0/2, defender, flying, Prevent all combat dmg dealt to and dealt by ~)
(U) Stinging Barrier (0/4, defender, U, T: ~ deals 1 dmg to target creature or player)
Spiderman's graveyard: Impulse, Chameleon Spirit, Impulse, Capsize, Strip Mine, Fleeting Image
Darthferret's graveyard: Remove Soul, Remove Soul, Remove Soul, Mana Leak, Rewind
Spiderman's RFG: Phantom Warrior
Darthferret's RFG: