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After the fall of Soulblighter what really remained of the Light forces?
From what I remember all cities in the west (Madrigal, Covenant, Scales etc.) fell. Was Muirthemne the only Light controlled city left at the end of the whole war?
The only things I remember left standing are the berserkers home and the Ermine, which isn't really much for the Legion to return to. Did Muirthemne become the main city of all of mankind? There probably are not answers to these questions directly in the game though.

Just because major cities fell, doesn't mean they weren't minor cities around still untouched. And just because they fell, doesn't mean they were leveled. Maybe not all buildings and homes were completely destroyed. People can rebuild. So the people who evacuated can return.

All of the cities in the west fell in TFL. Is there any indication that it happened in Myth II?

well alric won... the evil went away sorta. the myrks went back into the tain. the ghols fled into the mountains, the breunors went into the plains to wroship their cacodemon statues and the ppl of the empire rebuilt.

-Saint †

the forces of light and dark united and started fighting in small groups on gimble, proving grounds, badlands, desert, web, creeps and more

Yea. Like some sort of wird cosplay/larp thing to relive the good 'ol days when souls were real souls, women were sorceresses and 'mailing' a man didnt mean a late nite at Tuncers ale house. That sort of thing?