The Kalpa reseting is certainly not the godhead waking up. It is a natural process of the TES universe.
Assume "The Dawn Era was the End of the Previous Kalpa. The new Kalpa begins with the first day of the Merethic Era."
-World Eating 101
Kalpas begin back at the first day of the Merethic Era, meaning it is literally impossible for it to be a new dream.
ShawnHowellsCP wrote:
Both of these mention Kalpas
http://www.uesp.net/wiki/Lore:Dragon_Break
http://www.uesp.net/wiki/Lore:Dawn_Era
On further notes for Kalpas, the Hist Trees are from a previous Kalpa.
This is another story about Kalpas, and how select things survived from the previous ones
http://www.imperial-library.info/content/fight-one-eating-birth-dagon
You posted a quote from MK, and so will I.
According to MK :
"To the close dreamers, don't forget the Amaranth. There *is* one step beyond CHIM, but you're right in that it is not godhood. It's the flowering of a statehood where the images you give birth to in your dream-- stolen (?) from first dreamer-- wakes up. Wails knowing free will. And begins to dream in the same way. Children of liberty without end, and then the music lives forever as a pirate radio tuned against the rules of Heaven and the vulgarities of Hell."
(Taken from a blog by Enda Kenny)
In that quote (which is from MK's posts by the way), the line which says to "wakes up" uses long dashes which, in a basic sense, are equivalent to parenthesis. It's merely stating that ideas from the previous dream are stolen. The sentence by itself would be "It's the flowering of a statehood where the images you give birth to in your dream wakes up".
Also claiming this post by MK canon and his other referring to his intentions for the godhead aren't is contradictory.
ShawnHowellsCP wrote:
The Amaranth first appeared in the Loveletter, which was a refining of my mythology and its natural "end point"." This literally states Amaranth is the literal end to the dream, and beginning of a new one.
Now, You know for a fact that the Godhead can wake up
The fact that Akatosh couldn't send an Avatar until the amulet was shattered
Gods must find mortals to do most of their bidding (Sheogorath is pure unpredictable madness, from the Lorkhan-shaped hole)
Gods always set major events in action but never pull them off alone
and ect. work as semi-proof for the Gods fearing the Godhead until tomorrow afternoon, where I can work on finding more sources.
The Amaranth is not the end of the dream, it is a dream within a dream.
Pure speculation.
ShawnHowellsCP wrote:
If a kalpa ends, everything is destroyed (unless they someone live through it, read the Eating birth of dagon), and the universe essentially restarts with changes. If the godhead wakes, the same thing occurs. Everything dies.
INCLUDING the gods.
As I said before the universe does not restart, it returns to the convention. Kalpa's ending do not kill gods, as dieties avoid the death of kalpas through the walkabout.