Oh, cool! If you want a serious treatment of amnesiac!Naga, though, I highly recommend Facades, by Sean Gaffney.
He does sometimes, yeah. He wasn't this vulnerable or unstable when he was alive; it's more that he's dealing now with integrating his human and mazoku selves (which involves less guilt and more ego integrity/multiple-personality issues than either he or I expected) and also with very complicated feelings about being separated from Zelas, especially since she's not dead, and about... well, Xel was a very good Guildsman, and part of that involves not being impressed with yourself. His self esteem is more about what he can do, and he's currently out of the game. I mean, he likes the restaurant, and he kind of loves his other two jobs, but he doesn't feel about them like they're real work. It's driving him up the wall on a nutty banana peel, frankly, and that incident hit him in a related area.
I'm not really worried about his reactions to Gaav; Gaav has enough respect for his capacities to have expectations. And he's such a pure air-element type that even just being around an earth-fire combo like Gaav tends to calm him down. ;)