So, I just tried what you suggested, about paying attention to Jo, and I managed to find the ending I wanted. No war, south was healed, no one in the water, was able to destroy the threat, met both Mr.Pents, switched to working in the magic shop, went to the reunion, went to Suzettes wedding, and was friends with everyone. Then I stayed.
Honestly this was one of the most interesting, and fun, and emotionally investing games that I've played.
10/10 would recommend.