Taking into your what ifs, there’s a problem with the latter, because, again, there’s a place that acts as her hotel, even if they trip into the land of Damnation, there would have to be some system in place that determines they belong there, and it may turn from Hazbin Hotel to Hazbin Taxi Service. The goal would be get them into Purgatory and then have them wait their turn. For the former though, it causes issues with the Adam is super bad for exterminations. Adam can now just say “We gave these fuckers a second chance, and even when we laid bare their sins before them, they refused to change. They chose their sins over paradise. We are not giving them a third chance now.” Suddenly, he’s making a ton of sense, and Charlie‘s stand against them is no longer heroic, it’s rebellion and she now just another Morningstar, and what are they great at? Rebelling.