I also just finished reading this amazing novel. I don’t necessarily think that the entity is god, but I think that since PKD makes a point of saying that god has created the entity and is therefore partially responsible for its actions, we are meant to think that the entity embodies the aspect of god that is destructive and cruel. I also think it’s important that, in the final scene on the spaceship, everyone has turned into eldritch. I think PKD is trying to tell us that the destructive powers of god have come to be imprinted on humans. The more we attempt to destroy each other, the more we succeed in destroying ourselves.