A theory would be: "Lord Parson"=/="GM Parson". Lord Parson's a pawn, and his clueless is a delation mechanism until he becomes too good to beat. The coalition's state after the eruption matches the "they have to cheat the rules to win" description, and the post-eruption state is largely irrelevant to past events. In other words, the players get a win/win scenario and play around, but no matter what they do, GM Parson needs minimal manipulation to lead the game to the eruption: Ansom and the pliers would be close enough, dead or alive during the eruption, our bad attitude monarch wouldn't need a too good excuse to fly off with the dwagons, and as long as Jill has gone free and the 3 casters are alive by the time of the explosion, everything goes just as planned (meaning Parson could have "scripted" an intro that lead just where he wanted, while leaving an illusion of control, and failure). So, GK being on the verge of extinction could be just a ruse to hurt the player morale when they lose, and provoke them to try and cheat. Besides, with Lord Parson being outside the norm and rules, and therefore an excuse to cheat, cheating on part of the players would only make the playing field even. With that, the last "real" panels are just narrative, with the settings clearly involving the supposed "pawnification" of Parson as a means to introduce "Lord Parson". It's just that the readers watch the game from an in-game perspective.
With that, and although i don't know much about the kind of games Erfworld is set on, let alone Erfworld specifics, the Dollamancer's words (can't recall name) implied that the way the King (can't either) was saved involved "accessories", an idea of his inception. So, it being a last-minute-save trick comparable to the Volcano's uncroaking, this could be the player's first success at cheating themselves, kinda fitting in.
I'm not saying it's too plausible a scenario, or too great one, but i like it better than the "Parson's on it's last" concept.
P.S. Did the IPTSF updates die? It's been more than a month...