1) your presume correctly.
2) The maiden is saying that there is something redeeming/useful in all men, even if its just being used as fertilizer. She is implying she might do him harm, the pointed teeth implying she is a monster or cannibal despite her civilized appearance. The wizard's response both implies that there is more to him then simple meat and that if she is a monster, come and get me.
Double meanings about in this particular article.