From my memory of the lore behind Kazawari- Galawain created the island with an insulated wheel (separate from the normal wheel) where he could play out his love of survival of the fittest.  However, a crisis occurs when one of his demigods decides to break the miniwheel.

The above summation sounds a lot like the major crisis in POE2.  Eothas decides to break the big/world-wide wheel.

In SSS the watcher is able to enter the spirit world, physically mend the broken pillar, and fix the functioning of the mini-wheel.  So... perhaps the watcher could find a way to fix the big wheel too in much the same way?  We've seen the watcher mend adra pillars repeatedly.  We've seen the watcher direct souls (you choose what to do with all those souls at the end of POE1).  Couldn't the watcher mend the big wheel after Eothas breaks it and perhaps decide what role the gods get to play going forward?

Hm, not sure. At the end of PoE1 the watcher directs the souls of the Hollowborn of Dyrwood and iirc, passes out afterwards. Repairing the big wheel would mean directing all the souls of all living beings in Eora that died within the last - don't know what period of time, really, but anyway. It's just... much bigger. Similarly, the destruction caused by Eothas is much worse than that of the Slaying Face, who only broke one pillar.

At least, that's what I think 🙂