In a previous episode we saw the cave that Sawyer and Flocke visited. On the cave walls were the names of people with lines through them, as they were removed as candidates.
In the Lighthouse, we see a dial used to depict the direction of the person whose name is written on the edges of the dial. Some of those names were crossed off. Also, since the dial worked in "degrees" does that mean there could only be a maximum of 360 candidates?
Now, why would Jacob need "two" lists to work with? If Jacob was watching people, which I think he was, why would he go back to the cave and write their names there.
I think MIB also knew the names of the candidates and wrote them on his cave wall. I think the crossed off names are people he killed or through inaction died on the island.
The boy in the jungle said, "You can't kill him." Did he mean Sawyer? He obviously didn't mean Jacob, otherwise he would have said, "You shouldn't have killed him."
Considering that we only saw our Losties on the wall, and their names clearly on the dial, it is my guess that we truly are at the end of the game.
Hurley is important. I can't decide whether Jacob brought Hurley there as a candidate, or because he knew he would die and need someone to communicate with. Also, the same reason Miles may be there. Now, Jacob didn't touch Miles, but I wonder if "birth" on the Island means you've been pre-touched. But its clear Jacob needed Hurley.