Board Thread:Lore Discussion/@comment-25244530-20140210065930/@comment-16047389-20140806145332

Well the main problem is that, in a sense, the souls of the gods are eternal. The souls of Gwyn, Witch of Izalith, Nito, and Seath all make a return in Dark Souls 2 in newly reincarnated forms. And from dialouge with various NPCs, it seems that it isn't the first time that they've done so, and may in fact reappear everytime the First Flame begins to fade.

This doesn't necessarily disprove your theory, however, and may in fact bolster it to a degree. If Velka indeed created the prophecy of the Chosen Undead, then perhaps her true punishment for the gods wasn't to die, but rather to be slain and reborn again and again to eternally serve as kindling to the First Flame. Old King Soul mentions that the eons have reduced the once magnificent soul to it's current remnants. Perhaps Velka's true punishment was for the four of them to be burned again and again until their souls completely fade away.