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GOLB and Margles is some of the best theories to discuss, at least in my opinion. To my understanding, GOLB was an interdimensional being meaning he can exist somehow in every dimension. Now, GOLB would attack on Mars every so often, so Magic Man was ordered to create a defense system named M.A.R.G.L.E.S.. M.A.R.G.L.E.S. stands for magical automated resistance generating laser energy supplier. If I can recall right Magic Man claimed that this was a 'tribute' to his late wife the actual Margles. I think GOLB took M.A.R.G.L.E.S because it was pure defense or maybe to absorb her magical essence like he did Betty, who knows, that;s just what I think.
I do think that when Margles fell off Olympus Mons she did die. I know this is for a fact because Magic Man wished for Margles to come back in Prisomo's Timeroom and he got balls, the same thing that when Simon wished for Betty back in Come Along With Me. Even though Primo can wish for alter realities there is always a 'Monkeys Paw' meaning there is a twist to each and every wish. To my understanding Prisomo cannot wish life back in the reality they have already died, maybe if it wasn't said persons 'time' but still his powers are finicky with death.