I'm thinking Fae have the ability to manifest into the Material.
But yeah, one idea is that some Terrestrials 'Ascend' by basically dying but sticking around as powerful spirits.
And another thing, I was thinking Fae could attain Terrestrial Godhood too. They essentially have to get the same thing as a mortal but approach it from a different direction.
This, obviously some magic will leak from the soul into the body that way if for some reason a god did lose their physical form, they'd lose some power but not enough to revoke godhood unless as I said earlier they were barely a god to begin with.
Fair points, though you still end up with the situation where you have dead gods that are basically bodiless gods.
Or we can work with Terrestial Gods being unable to die permanently- wen they die, their bodies get reconstructed by their Celestial Gods and they awake somewhere (and given that Celestial Gods are not really sapient the location is random with limits to the randomness).

Can't see why not. A tendency means that there are exceptions to the rule, as well as a different expression for every Terrestial (spending different amount of time pondering/with Aether, etc).