Not sure about the fluffing up....I would keep an eye on it and see if it improves
If not, another vet trip may be in order.
As for using soap and water - sounds good to me! That's what I use for most of my birds stuff
I also use lysol and rinse the living heck out of everything, as Oztiel said - cockatiels will chew most anything and I don't want to poison my brats!