That may just help him be more compelling, now he's not just a conniving schemer seeking revenge, but a lost piece of soul crying out for help. Maybe he would get defeated by having them fused back into one, and that's how he gets his pre-OMD memories back? Also that brings up another question, if Kindred is someone else, would they know about Peter's deal and how this resulted in reality being changed? I would imagine if they were in hell the whole time they probably wouldn't be effected, or would hear about it from "the big man".
Also, connecting back to Kindred creating himself to be a "nightmare" for Peter, I did notice there's a running theme of nightmares, dreams, illusions, and memories that have occurred fairly frequently throughout the run. There's Peter's dream (or could even be seen as a nightmare in a different context) of the Fraction Annual in the first issue, Mysterio's own Kindred-induced nightmare in the same issue, Jonah's trip down memory lane in Lifetime Achievement, Felicia haunted by her old memories in the Hunted prelude, Peter's visions of MJ's death in Hunted, Peter taunted by Kindred in his dreams, and in this past issue, about how Peter's memories of his friends have turned into nightmares for him over the years. Which makes me think thematically of what else Kindred would want and why exactly it's him rather than just who.