So Deathstalker, very undramatically, strolls over and takes the chalice from the sorcerer. Deathstalker decides, for no really good reason, that the items of creation need to be destroyed. I have no idea what the people who made this movie were trying to accomplish, nor do I really think I want to know. None of it makes any sense at all, and I howled with laughter through most of it. Things happen for no reason.
Entire scenes have nothing to do with the plot.
The evil sorcerer has an animated sock puppet in a box. We see this thing several times, but nothing ever comes of it. Sword guy has a random scene where he somehow falls through the roof of the brothel. Nothing comes of it. Nobody ever explains where these three items of creation came from or what they really do.