Right now Karlach content is barebones. Find one piece of Iron, then the second one, and that's all. You can also kill a certain character and get her rant but that character dies anyway so it's not really special. And then boohoo, boring sad conclusion. Not very fitting for a game about funny talking animals and cheesy sex jokes.
What I suggest is scrap all that what happens after you give Dammon the second piece. GO NUTS. Make us collect and kill optional harder bosses for special rare parts, metal or insane magical stuff to bring out the full potential of her engine. Give her a small perk tree on her own. Forbid her gaining positive effects from potion, make her always hasted, constant fire aura, complete change of her element from infernal to ice, forge her a damn Iron(wo)man Suit with the engine as the core, GO CRAZY!
Scrap that boring sob story of the engine eventually going boom, we already have that type of character in game and all he has to do to get cured is to not kill himself! Anyway what do ya think?