Sili, I think this theory is a lot like my Complete Cycle posts (about the comets and Tharsis and directions) and the geographical inclinations I've been speaking of lately: a few people don't beleive its very core premise and will never be swayed, and to the rest it's so blantantly correct that there's not really much to debate.
One comment, though. Alric said in TFL "Balor has been killed before, and each time is has only made him more powerfull." I've long believed that he was speaking of the Leveller part of Balor, not the human part, and your theory reinforces that. Every cycle, the stakes get higher, things get more and more extreme, and thus the Leveller is more powerfull.
