Hello.
Voted for:
1.Episodic
2.A mild balance between the two
What makes a RPG (or any rpg-likes games) really good is not a complex story,instead its the characters of that given game.
Lets see - 2d turn-based tactical RPG and Hell vs Heaven theme.
Keep the story simple and follow what you have in mind till end (maybe with multiple endings or not,depends of the desire of the player not the storyteller).
Since the player will a have party (its not fun to be alone ) and for example having a choice to save a innocent angel from an evil demon or helping said demon to kill the the angel,well depending on the choice you will have a new member to your squad.Your party members could have some relationship with each other or with the player and could affect some parts of the story,but it would be intresting to see it since the game would be in a episodic format (dont see why it shouldn't).The player doesnt need to have full control over the story,only needs to enjoy it.
Anyway I am rambling and imagining some stuff.Whatever the game will be,I'll support and play it.Ok,bye for now