In this final verse of Chapter 1 we have a summary of the process and ultimate illusory nature of the creation. "Ten sefirot of of nothingness" - the ultimate nature of the creation is "no-thingness". "Breath from breath" - the creation is a mirror image of the Creator, and hence, there is really no separation between the two since the oneness of God cannot be divided. It is analogous to trying to draw a line in water. "Water from breath, fire from water" - the dynamicism of the creation is the result of the apparent split of reality into three principles, two opposites and a third principle to mediate between the two. However, as the very first verse of the Sefer Yetzirah indicates, this split is ultimately illusory. "Up, down, east, west, north, south" - at first glance one would think that north and south should appear in reverse order since "up" is the direction closest to God and "north", the direction of severity, is the direction that is farthest away. So why do we end with the south (mercy) instead of the north (justice)? Possibly because the world cannot endure under strict justice. We need a little slack and a little mercy in order to survive.