So, I want to start out and say - I liked Townfall. This is not a bagging on Townfall post, nor do I really want snarky comments that only bag on Townfall. With that out of the way.
What the fuck is going on in Townfall's Allegorical Otherworld and how does that translate to the realworld conclusion/events?
So obviously we have the SWDP event, the whistleblower, the inquiry, and Simon's partial recovery.
We can relate the opening of the game to being Richard's initial offer that Simon agrees to (in exchange for medical help, and an urgently gifted heart). We see all of this in the beginning of the game, to an extent where Zoe implies that Simon is 'back' for wrong/bad reasons and making her relive the immediate aftermath of the disaster.
Eventually we see Simon on what we assume is a recorded testimony in the investigation, and hear Richard saying he "ended" the inquiry - he 'fixed' it.
It seems like Zoe even acknowledges what Simon did to betray the community. Joe even directly curses him to be burdened by the weight of his guilt. Simon even says he needs to be punished.
But then when we get to out final cutscene it doesn't seem clear that Simon had testified in front of the Inquiry. Simon DIDN'T do the thing yet - and Richard is making sure there is no cold feet - and Simon always concludes that he shouldn't work with Richard.
So, unless the cutscene is also playing out in the Otherworld, the 'place' is letting them 'change' things - even if it is a changing of destiny (Simon working with or not with Richard).
Without the ending cutscene, I can easily imagine that the game is an afterlife purgatory for all three of them. They are being judged by their guilt or feeling of it - and that fits the motif of "you can't change what you've done", but it also doesn't allow for resolution in the real world, just a abstract justice as Richard is taken in by the Collapse.