I think this song is actually after he kills the 1,000 men and is reunited with his lover. He has to admit all of this to her, but they're together again. That explains the first bit of the song.
"And we'll all dance along/to the tune of your death" I think has a double meaning - it's about the protagonist and those he has killed, AND Satan and his deal with the protagonist.
"We'll love again/we'll laugh again..." etc. are about how he's back with his girl.
Then, abruptly (the first time that is sung) it switches to "Well never again..." which is about the lovers' final death.
The repetition of the "And we'll love again/we'll laugh again/we'll cry again/and we'll dance again..." comes after their deaths, when they're both in Hell. This time, "And it's better off this way..." is about how it doesn't really matter anymore for them.
The repeat of "Well never again..." is to end it, and a bitter after note to "and it's better off this way/so much better off this way".
I think this song is actually after he kills the 1,000 men and is reunited with his lover. He has to admit all of this to her, but they're together again. That explains the first bit of the song. "And we'll all dance along/to the tune of your death" I think has a double meaning - it's about the protagonist and those he has killed, AND Satan and his deal with the protagonist. "We'll love again/we'll laugh again..." etc. are about how he's back with his girl. Then, abruptly (the first time that is sung) it switches to "Well never again..." which is about the lovers' final death. The repetition of the "And we'll love again/we'll laugh again/we'll cry again/and we'll dance again..." comes after their deaths, when they're both in Hell. This time, "And it's better off this way..." is about how it doesn't really matter anymore for them. The repeat of "Well never again..." is to end it, and a bitter after note to "and it's better off this way/so much better off this way".
Just my opinion.