Hmm, what of those who have become utterly corrupt and consorted with demons/etc - do they recycle or are they damned - or do they become demons?
I'd expect some finality to both the best and the worst of people with the bulk then renewed until they achieve one or other state (perfect purity of soul or utter damnation) - hopefully the former of course, but with the latter as both cautionary tale and explanation for the wrongs of the world.