They should be the given the chance to return to their world. Maybe under a different incarnation. Just like Ardenweald.So I was doing the most recent part of the story campaign on my Maldraxxi main and the Alexandros' reflection on why he was chosen for Maldraxxus got me thinking.
So from what I gather from the quest, the reason why he didn't go to Bastion is because unlike a paladin motivated solely by the Holy Light (.i.e. by "higher ideals") he was motivated by a more down to earth love for his family. With that in mind stripping him of these memories would take away his motivation and everything that made him a hero.
While I can perhaps buy what this is saying about Alexandros (that he was only ever motivated by his family and that without that he would be nothing), what doesn't make sense is what this is saying about more devout paladin's like Uther. Surely the fact that these individuals were motivated primarily by their faith in the Light would be just as much of an impediment to their ascension as Alexandros' love for his family- from what we've seen from the Kyrians belief in the Light is not approved among them and it would be something cast away with your old life just like Alexandros' memories of his family. If they became Kyrians then they would lose their primary motivation just as much as Alexandros.
This gets I think to the crux of one of the weirdest things about Bastion- the treatment of ideals like service and faith entirely in abstract. People don't do selfless things because of entirely abstract notions of service, devotion, and faith- they do them because they serve, devote themselves, and faith in specific concrete ideals greater than themselves.
A follower of the Light, or indeed any religion, doesn't worship and devote their lives to their specific religion/philosophy because they have an overwhelming urge to serve anything- they choose to serve that thing specifically. Just look in the real world and you can see that it is in fact the most devoted among any ideology that find the idea of serving a rival ideology so abhorrent- no one (or ay least very few people) serves because they are dedicated to the idea of service itself- rather they serve because they believe the thing they are serving is worthy of their service.
Now I grant that if the ideals that motivate ones service are something vague like "helping others" or "keeping the natural order" or something like that then I can see such a soul fitting into Bastion. Losing ones memories might be hard but ultimately you would be willing to do so to serve the higher ideals which the Kyrians also serve. But if your motivation is anything that involves the specific worship of a force or being/s that you know as a Kyrian you will revile then I can't think of a worse kind of soul to be sent to Bastion. You would have no motivation to join the Kyrians because while you might be someone who practically embodies the principles of "devotion" and "selfless service" what you are devoted to is in fact entirely opposed to what the Kyrian's represent- which is an unthinking devotion to the Arbiter and the order of death over everything else, including the religion/philosophy you dedicated your life to serving.
tl;dr: Having an afterlife based around the character traits of "devotion", "service", and "faith" in the abstract is stupid. No one is motivated by these things apart from whatever specific principles they are devoted to and serve, and thus having paladins like Uther who served first and foremost the Light, a force that the Kyrians reject, go to Bastion makes no sense.