Since I've collected enough of these heart shaped wakestones (revive item) I am now able to open an even stranger portal in the Everfall which leads me (alone) into a strange plane where the floor is water, and it is only decorated by a single throne which a dude in a white robe sits on. This god "Seneschal" turns out to be Savan - and he is behind the whole mess that brought me here in the first place!
Apparently he is bored of being god, and the only way to step down is to get an arisen to kill you and take your place. The only way to make an arisen is to summon/create a dragon into the world, and just like me - he killed his dragon a long, long time ago. This ultimate showdown is a bit lack luster, even when he summons his man at arms as well as Rose for a 2 vs 2 fight. He is easily defeated, and asks that I kill him. I oblige and become the new god.
Savan prefers to talk than fight.
I can tell right away why this is boring though - at this point you can only visit Cassardis or Gran Soren as a ghost figure and can't interact with anyone, apart from attacking or throwing them around. I do think of a way to break this cycle though. I need an arisen to end my loop? Well, I am an arisen right? Seppuku time! Yes, the game makes you kill yourself. It works - and the watery floor gives way to clouds as Rose and I fall into the sea...
Rose eventually washes up at Cassardis beach, inexplicably wearing my armor. Was I just a figment of her imagination this whole time? Madeline helps her up and assures her that the two of them will manage brilliantly. At this point I have the option of starting New Game+, but then I wouldn't really be breaking the loop would I? :P