If we are theorizing just for the sake of theorizing. Depending on what language and its age the devs took the name from the word Val means wither fallen or battlefield in English and in all 3 possible languages heim means home in English.

That suggests that Valheim is some kind of Norse purgatory not connected to the world tree or the rainbow bridge where dishonored/bad/inept Vikings go at death, which means there are 2 possible endings.

You are stuck there forever reliving your sins over and over again or you eventually achieve penance and are taken to Valhalla.