lol, I was just wondering if you moved them or not just this morning.
Any idea what could have caused the fatality? Some fry are just not ment to make it far in life, and when you have them seperated and counted out, you notice one a lot more than if they were with a large group. I've noticed that mine love to pick on aglae and anything else that you would find in a well established tank. You may want to mature a tank just for the fry, and then try to move another spawn sometime down the road. Thats exactly what I'm doing at the moment. I have 9 danio's in a 10 gallon bare bottom. I over feed, and have a halogen light over top of the tank. This should help spur algae growth. I also have some java moss that I'm going to put in the 10 gallon as well.
I see no reason that you couldn't leave them with the female.
Instead of moving the fry, have you thought about moving the female back in with the male to try to get them to spawn again, and leave the fry alone in the tank they are currently in?
I was wondering if your fry are showing any signs of color yet. Or if they are even starting to look like kribs. At two weeks, mine still have that nice 'camo' pattern going on. And I don't know if the fry are getting to big for the pair to herd around effecently anymore, or if the pair has lightened up on keeping them in a tight group after removing the remaining tetra's, but those little fella's are running amuck all over the tank.