I think Loki season 1 did wrap things up with a cliffhanger and setup for the movies.
I know season 1 ended by announcing season 2, but I think we would have got a very different season 2 of Kang wasn't coming to an end. I think season 2 would have still explored Victor Timely but wouldn't have ended with Loki on the time throne. I think eventually that might have happened, but not in season 2.
I feel like it would be hard to capture the same essence again for a second season. This being a spiritual season 2 to Wanda Visions works very well. I look forward to see what carries over into Vision Quest.
These shows don't need a second season. This is the MCU, everything can get a continuation anywhere else. In a way, this was Wandavision season 2 and I like it that way.