This has been bothering me since I started playing this expansion. Nothing about it makes any sense. Because all of the stuff you said is true — how can this be an afterlife if you can just die in it? That just kicks the question of “what happens when you die?” down the road a little. And why can demons be endlessly reborn in the twisting nether but our souls get two chances before they’re completely gone?
But then what about Margrave Stradama? She was blasted with all the plagues and died but can be brought back with a special potion? Actually I just checked the wiki and it basically says she didn’t really die but got transformed into a slime monster, and OK but like... what does that mean about the state of our soul.