That's convenient! eek! And I'm pretty sure not at all what was shown during the game...
Kratos never died at a single point in God of War 3. The ending itself is unclear as well.
He only died twice. Zeus killed him. And Ares did. That's it.
And yes, that is exactly what happened. He jumped down from the Labyrinth, which is halfway up Olympus by the in-game diagram, all the way down to the three judges area.