Karlach's always-dead ending feels like it fit perfectly with a lot of the earlier content. Much like how Wyll represented a 'I took a deal with the devil, and as much as I regret it, the powers are very useful' perspective, and Gale a 'I'll take the power, I can control it, I'm smarter than the devil' perspective, Karlach feels like she would've slotted in as the 'I will not make any deals with the devil, even if I have to die because of it' perspective. Which might've worked really well before they dropped that whole aspect of the plot.