That's what I always assumed. The cycle determines who's on which side, not who wins. But could Alric break the cycle by lobbing Balor's head into the Devoid? Can mortal hands rend a divine plan so easily? I thought they threw the head of Balor in to definitively beat Balor, not the cycle as a whole. If that spirit did seperate from the world, why couldn't it just come back in another thousand years? Before you say that this wouldn't make sense, remember that you're dealing with a world in which talking trees have fistfights with living pieces of clay.
"...and their right hands were raised in menace against mankind." sieg zeon