The MCU's Loki revolves around the Norse god of mischief butting heads with the Time Variance Authority, an interdimensional organization that supposedly governs and maintains the Sacred Timeline, preventing variants like him from altering its course or creating alternate timelines. The show reveals that Loki's fate in the Sacred Timeline is to fail so that other heroes can succeed and achieve their full potential. It's a dark revelation for Loki as he realizes that he is always doomed to lose.
episode 7 asks how the timeline would be different if Thor (Chris Hemsworth) didn't have Loki as a brother. It follows Thor as he shirks responsibility and throws a non-stop party that travels its way around Earth. Loki does make an appearance, but it's the Frost Giant version of him that was raised by his true parents in Jotunheim, and he only serves to enable Thor's rebellious behavior. By the end of the episode, it even appears that Loki's absence as Thor's brother has somehow led to Ultron acquiring the Infinity Stones.
The episode of What If...? draws a stark contrast between the somber reaction to Loki's fate on the Sacred Timeline. It reveals that his destiny is actually a gift because, without him, the of his family devolve to significantly lesser versions of themselves. Not only that, but his presence could be the catalyst that saves the world from annihilation at the hands of Ultron.
Party Thor is the prime example of the benefits a character gains by having Loki in his life. Where the Sacred Timeline Thor is virtuous, honorable, and brave, Party Thor is irresponsible, dishonest, and immature. Frigga also exhibits attributes uncharacteristic of her primary timeline character, using her husband's absence to shirk responsibility and visit her sister. She is a far cry from the nurturing, ive maternal figure viewers have seen previously. The episode makes it clear that without Loki to test them and keep them on their toes, neither Frigga nor Party Thor is able to become the best version of themselves.
It also appears that this effect applies to all of the Avengers, though most of them aren't shown in the episode. Loki is the first real threat that the Avengers face together, and he was the force that caused them to overcome their differences and unite against a common enemy. Without Loki to deal with, the Avengers seem to have failed to stop Ultron, and he ends up with all the Infinity Stones. If Loki testing Thor and Frigga brought out the best versions of their characters, it follows that the same would be true for the other heroes who ultimately defeated Loki. So although his fate on the timeline is to lose so that others may rise, this destiny is actually his own version of a heroic sacrifice needed to save the world.
episode 7 clearly has massive implications for Loki's role in the Sacred Timeline. It could even call into question the moral implications of Loki's desire to subvert his destiny since that could mean the destruction of the world by Ultron. It's unclear whether the Ultron plotline will make it back into What If...?, but the twist certainly leaves viewers with plenty to think about before season 2 of Loki.