Oh man, this is so disheartening to hear having a devout monk to Dwayna knowing she just thought to GTFO, which is weird since supposedly the Gods brought humanity to Tyria, guess they were too lazy to even bring a few so as not to completely leave them behind. Also as for the Balthazar thing, I suppose I took advantage of the break between the expansion and LW3 for him to contemplate a bit about the fact that a god had returned and was wrecking house. Nothing huge, but ultimately I do wish the other gods had more impact on the actual plot. Guess it may just be so that GW2 doesn't get too human-centric?
The gods have made a huge impact on the overall story really, the best way to kind of sum up is to is spoil the whole thing, so...to sum up how bad things have gotten...
The God of war is dead, however in his death, the machine, the only tool capable of saving the world had to be destroyed.
To make matters worse, the most deadliest Elder Dragon if not the most powerful has now become part God and our ally also didn't look to friendly towards the end (though she will be and will most likely die to save the world)
So, for the time being, Tyria, the planet, is now on borrowed time. It can't kill the Elder Dragon God as it will destroy the world, it can't put it to sleep because the machine has been destroyed.
Perhaps death is the only peace our characters can hope to have? Nope. Because Grenth has left purgatory to a spirit that can't really fight anything, a demon can simply walts into purgatory and start consuming souls. But...it's just human souls right? Wrong again, everyone goes here! But maybe you were a really strong fighter, so you'll just become the doom slayer and go around killing demons left right and centre- Oh yeah you're unarmed and er...people can steal your "identity" and then kill you.
But it gets worse. Balthazar went into purgatory and with his power, he not only stole souls from purgatory to serve him but he also imprisoned Joko in an eternal prison..until he dies of course. Well. He's dead but his power has just gone into an Elder Dragon. Which means in theory, Kralkatorrik could brand an entire army, let them die then go to purgatory and then put them in the same armor that Balthazar did on top of the army Balthazar had already.
Put it like this. You fight Kralkatorrik, he kills you, he makes you his slave, you get killed by your friends, Kralkatorrik could go into purgatory and then make serve him once more. Not only has he killed you but he's also stripped you of any reward (or punishment) you might be due.
An unkillable killing machine that will turn you against your friends and then once you finally die, it'll bring you back again to kill all over again.
The only way this hell could end is if the gods simply did the merciful thing and destroyed Tyria and ruled over purgatory once more, at least the mortals would have heaven and hell. Them leaving has such a big impact on now just Tyria but the other realms that they used to rule over.
Why they've done it is simple, they're fed up with us and we know that Lyssa mocked Kormir for caring about Tyria, I think even some of the gods felt it was just best to let go and have a fresh start. It's not as if the gods didn't try to save the mortal races, they imprisoned Balthazar so he couldn't do anything. The mortals could continue to use the machine put the Elder Dragons to sleep and there would be "peace" but...Rytlock screwed everything up.
So all that hard work they did, imprisoning one of their own, finding someplace that no one should go to and the mortals ruined it.
What makes PoF so good is they've made what is a human centric story, a universal story. Same with what they did with HoT. Sure, you could argue it's more human but it effects all races.
I'm aware the names of these places isn't called Purgatory, heaven and hell but for the sake of getting the point across easier, that's what I've used.