Since this is a topic about Divinity 3, I"m not going to use spoiler-tags, it would just clutter things up and make it harder to read. If you haven't finished FoV, you shouldn't be reading this thread anyway.
Ever since revealing that the Divine is still alive at the end of ED, and especially after bringing him back in FoV, Larian has kinda written themselves into a corner. Hopefully that was on purpose, but in the game where Damian is finally defeated (which may or may not be Divinity 3), there is only one outcome that will satisfy:
The Divine must be the one that kills Damian. It is the conflict between the Divine and Damian that is at the emotional heart of the story. That is where the strongest emotional connection between hero and villain lies, not between the Dragon Knight and Damian. Look at the scene in ED just after Laiken dies between Damian and Zandalor, Damian gets really upset at Zandalor in a way he never did against the Dragon Knight. He didn't care about the Dragon Knight.
When Damian is defeated, it must be at the hands of the Divine, not the Dragon Knight, not the (probably deceased) Paladin from 50 years ago, not a brand new third hero.
In terms of gameplay, that means that the player needs to control the Divine for some significant fraction of the time. It wouldn't feel right to play as mysterious third hero for 90% of the game, then suddenly you're controlling the Divine for a single boss fight. While the emotional connection between in-game characters is good, it loses the connection between the player and the charcter they've been controlling. This doesn't mean that you have to only control the Divine from start to finish, there could be multiple player characters.
An interesting thought might be to bring a player-controlled Dragon Knight in in Dragon form for a bit to take out defenses too dangerous or impervious for the Divine to take out on foot.
Something interesting might be to have the Divine start out at level 20 or so, as a reflection of his awesome status.
You probably have even better and cooler ideas, but if you want, go ahead and use any of this stuff if it's interesting, Larian.