So, I'm not gonna miss the Wall, and in fact in my headcanon for my games I already ruled it kind of like this version of the Fugue Plane. And while I do think this puts the gods in-character in a better light, I wonder if on a meta level people wouldn't still feel like this sort of afterlife is a punishment for atheistic characters.
It's still pretty cruddy, after all, and leaves the characters at the mercy of a god anyways. At least it's more equal opportunity, with some seemingly positive outcomes.