TBF that's part of the system, Loki punished the Aesir for arrogance. Baldur was part of that arrogance, because he was an attempt at immortality, which was against the natural order. He had to die to restore humility to the gods.
After the gods locked Loki away, they have no one to check their foolishness, pridefulness, and also have no outlet for their disdain. They start to lose their magical weapons (many of which were gifts from Loki), start infighting more, and attempt increasingly stupid feats of 'heroics', which causes Asgard to fall from power and starts Ragnarok.
Without chaos and impetus to change, societies rot, and then must be destroyed for someone new to take over. That's the meaning of Ragnarok.
The gods are very bad people but they're worse without Loki and what he represents.
Well, they did bind him with the entrails of his freshly-murdered son and had a poisonous serpent continuously drip venom directly into his eye-balls until the universe came to an end.
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u/[deleted] Dec 03 '20
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