The Holy Alliance might in theory have continued fighting, possibly even making some more gains (albeit probably not much - their logistics were in disorder, and the Turks were effectively pushed back to a more defensible position). However, by then some of its members - namely, Poland and Russia - were distracted by Swedish activity in Germany. Charles XII (who is quite different from the OTL version, being born long after the PoD - he still is ambitious and reckless (not as much as in OTL, though), but due to physical weakness, is more of a "spider king") seeked to consolidate Swedish predominance in north Germany, directly or through puppets and allies. At first, he tried to negotiate an alliance and a partition of Germany into spheres of interest with his Wittelsbach relatives in Burgundy and Bavaria, but, for various stated (religion, pacifism) and common real (interests of state, fear of Sweden, belief that Germany should remain as disunited as possible until we're ready to unite it ourselves) reasons, they refused. His devious mind then turned towards an unlikely ally - Elector Friedrich III of Brandenburg. He was bitter over the loss of Brandenburger Pommerania and over the damage caused in his country by the Swedes, but Charles managed to persuade him that Poland was a bigger evil. Friedrich III seeked to acquire for himself a greater status, even if a nominal one, and finally was persuaded by Charles XII to ally with Sweden, receive Brandenburger Pommerania back and support the Swedes in taking over the much more valuable Mecklenburg. It didn't take much time for the Swedes to conquer the duchy, and their plan moved on to the next stage. Friedrich III was to become the nominal leader of a rebuilt German Empire (a re-named and shrunken (lost Bohemia and the Burgundian territories, but notably not the Swedish territories that were to be separately declared in "personal union" with Sweden, thus giving Charles XII an obscene amount of votes) Holy Roman Empire), just like his father was meant to be. German leaders great and small (or their representatives if they couldn't come themselves) were assembled in the free city of Erfurt to discuss the "matter of the Empire", in 1706. A few central German minors agreed to the Swedish plan, but the rest naturally refused this outright, not even as much out of distrust for Sweden or Brandenburg as out of the same old belief about the need for a balkanized Germany outside of anyone's influence. Some wanted to unite it themselves, most wanted to keep the status quo. The most ardent opponent of the Empire was the elector of Brunswick, Georg Ludwig, who ironically enough was a Welf, thus maintaing the medieval tradition of opposing centralized Imperial power. He threatened the Swedes with war; the thought of the "Northern Menace" never left his mind, and when visiting one of his border fortresses, he was said to exclaim: "From here we shall threaten the Swede, to the woe of our arrogant neighbour!"
The Swede wasn't very happy about that. For the moment it seemed that the Holy Alliance has bogged down in Turkish territory for good. Charles XII decided that there would be no better opportunity for this - Poland and Russia were almost certain to oppose such an action, and it was best to act before they free themselves up. Swedish and Brandenburger diplomats pressed the issue further, while their respective armies were being prepared for battle. Brunswick then demanded that the Swedes withdraw from Mecklenburg. Georg Ludwig, who was a very shrewd diplomat apart from his obsession with the "Northern Menace", managed to forge a large coalition of German states (including Bavaria) and get assurances from Poland and Burgundy of their support at later stages. Negotiations with UK didn't go as well, but even then, many voices in the UK Parliament sounded out against Sweden and for the restoration of Denmark-Norway.
Undeterred, Swedish and Brandenburger forces set out to impose their Erfurt proposal in 1707, in the First German War. It was - quite rightfully - believed that crushing Brunswick and Bavaria will be enough to achieve this. Problematically, Central Germany through which any attack to Bavaria was to go was split up between many tiny states of various loyalties, but mostly pro-Brunswick. Most of those states had at least one old castle and a small army; they were no threat at all, but fighting all the way through their lands... will take some time. After all, there was a lot of them. A much more ambitious option was in Bohemia. Its rulers could probably be bribed, and if not, they could be intimidated. It worked in Bremen and Lubeck, so why not here? And besides, Bohemia had no serious army - just some militias. Peasants are no match for a disciplined fighting force, much less for TWO disciplined fighting forces. Having broken through Bohemia, said forces would invade Austria, advance westwards across the Rhine... and take out Bavaria.
As it was, the Bohemians refused to let the Swedo-Brandenburger forces pass, and thus had to defend themselves. The Bohemian militias were predictably routed at Jungbunzlau, and again just outside of Prague. The Bohemian parliament fled to Brno in panic. And soon, Friedrich III and his army were besieging Vienna. It was then that worried reports from Bohemia begun to come in. As the parliament was confused and increasingly impotent, a local national leader took matters into his own hands. That leader was Frantisek Kvarinsky, who reorganized the militias and waged a well-planned guerrila campaign, virtually eliminating the insufficiently-defended Swedo-Brandenburger supply route. Soon enough, Friedrich and his forces came under Bavarian attack, but repelled it; still, it was now obvious even to Friedrich that he had no chances here. He begun a retreat, fighting his way towards Prague, where his garrisons still barely held out. That was in late 1708; by then, the other Swedish plan was foiled as well. The attack on Brunswick was faced by German forces and eventually defeated at Hannover; the Swedes retreated to the Aller.
But the war wasn't yet over. More forces were sent to the task of subduing Germany, and on August 19th 1709 the city of Brunswick itself was captured. Georg Ludwig fled for Kassel. It was there that he received the good news from Belgrade. Poland and Russia were now ready to attack Sweden as well. Burgundian armies also set out to defend Kassel from Swedish forces, crushing the largest of Swedish allies in Central Germany in the process, Nassau (after the capitulation and annexation of which the rest of Swedish allies apart from Brandenburg itself surrendered). Charles XII's plans were clearly thwarted.
And so, Polish armies decisively crushed and captured Friedrich III at Prague. Brief attempts to turn Bohemia into another vassal state failed, but this wasn't very crucial for Jan Sobieski as he was more interested in weakening Sweden and Brandenburg. So from Bohemia, Silesia AND Posen, Poles then struck out for Berlin, forcing Friedrich's ministers to sign a peace treaty for him, dethroning him and replacing him with his infant son, Friedrich IV. Brandenburg then switched sides. In the east, Tsar Vasily, or Basil, II of Russia once more took personal command, and defeated the Swedish garrison of Noteborg, in Ingria. Meanwhile, Swedish forces won the battle at Osnabruck, proving that the economic might of Burgundy alone isn't really a substitute for military power (something immediately taken into account). Charles XII realized that his plans were, for now at least, foiled, and thus decided to hold on to Brunswick as a bargaining chip.
Fighting went on towards 1712, but Swedes held strong, defeating the Polish fleet at Bornholm and the Polono-German attacks, though retaking most of Brunswick, failed to dislodge the Swedes from Mecklenburg. Finally, a compromise peace was signed in Berlin. Brandenburg kept its share of Pommerania, but had to grant independence to Saxony, which became a buffer state between it and Bohemia, while East Prussia was annexed by Poland. Russia got to keep Ingria, where the city of Narvensk was built, to eventually, decades later, challenge the predominance of Arkhangelsk as the center of Russian trade with Europe. Sweden kept Mecklenburg, though. That, and the neutrality and independence of Bohemia were internationally guaranteed.
From then, begun the phase of preparing for the next war. Sweden and Turkey once more saw common interest, and a secret alliance was negotiated. Full-scale military reforms in Turkey were enacted, and the fleet was once more rebuilt, with the help of emigre French engineers. UK, meanwhile, has finally made up its mind and decided not to get involved in Europe - by then, the sudden and radical revival of Spain as a great power was a much more important concern.
Outside of Europe, life went on and colonial powers strenghthened their grasp. In the Americas, both the UK and Spain (which, if you have forgotten, includes Portugal and its colonies) consolidated their gains and expanded; the UK in particular encountered serious resistance, as French colonists led by one Rene Lesage started a serious rebellion in Acadia and Canada, backed by some Amerind tribes. Eventually, this was crushed and French colonists deported, many of them fleeing west, so inadvertly, the British have contributed much to the rise of the Metis people in central North America. Spain, for its part, had to deal with less serious rebellions in Portuguese Brazil that were also put down ruthlessly. Another rebellion, this one by the native peoples of America, pushed the Spanish out of New Mexico, which too was eventually reconquered. Spanish colonial authorities had authorized expeditions from Florida and Cuba to the Mississippi, eventually resulting in the foundation of Nuevo Habana (OTL New Orleans).
A sudden newcomer (well, sortof - as they did for a while involve themselves in early colonization of North America) to colonial race was Sweden, which took over the Danish (Greenland, Danish Virgin Islands, a trade post in the Gold Coast) and the Brandenburger (two trade posts in the Gold Coast) colonies back during the Holy Roman War. Until now, those colonies were rather neglected, but with the truce in Germany, Charles XII decided to invest somewhat into this potential source of income further, setting up two more trade posts in the Gold Coast. Neither the UK nor Spain took much note of this.
Apart from the Swedes, Africa too was a battlefield of Spain and the United Kingdom. The Spanish have built up on their success in Algiers and Tunisia, having invaded in 1714 and conquered Morocco by 1720 on the pretext of overthrowing the tyrannic rule of Ismail (whose exact title I'm yet to find - which was probably another reason for the Spanish invasion), who has also turned out to have assisted Conde (in OTL, he assisted Louis XIV; he did it mostly to make life more difficult for the Spanish, and Conde was a godsend in that regard ITTL) in the past. Ismail's formidable black army held the Spanish at bay for a long time, but negotiations for British help didn't come to anything - the British had better things to do at the time (see below) - and the Spanish just kept coming, so eventually Morocco was subdued. The heavy price paid by the Spanish there however persuaded them to take a more diplomatic approach from now on, strenghthening their influence in East Africa thusly.
By then, the histories of India, China, East Indies and Indochina were also affected by the European events. In East Indies, the new UK was quickly solidifiying its power, which on the other hand meant that it didn't invest quite as much resources into India as in OTL. Thus, when back in 1685 the Mughals resolved to push the English merchants out of Surat, they succeeded. They succeeded in making the UK an enemy. The English attempt to found a trade post at Calcutta was also blocked by Emperor Aurangzeb, and from then on, there could be no reconciliation. The Anglo-Dutch East Indies Company has decided to formally support the Marathas, led by Sambhaji (who wasn't captured by the Mughals as in OTL), and later by Shahu. With British advisors and weapons, the Marathas have fought back the Mughal pressure, making the Vindhya range the northern border of the Marathas. Rajput rebels made life even more difficult for Auraganzeb, as did Afghan raids. The Mughal emperor died fighting the Marathas at Ujjain in 1703, and his realm disintegrated soon afterwards.
Siam at the time has also evolved rather differently from OTL. Albeit France was crippled, Constantine Phaulkon, the Greek adventurer on the French payroll who became the Siamese prime minister, remained there, and the absence of French garrisons in Siamese cities meant that the anti-French faction didn't have as much support. King Narai lived longer with less disappointment in his life, and generally, Siam continued to modernize, even getting a small share of the French emigres. The strenghthening of Siam, a power clearly hostile to UK, resulted in Myanmar allying with said UK.
As for China... The more succesful Crimean campaign of Golitsyn resulted in a longer border war and in a treaty of Nerchinsky in 1693, not quite as favorable for the Russians as in OTL (less trading concessions). The Chinese forces nonetheless didn't do as well against the northern barbarians as one might have expected of them, and thus the experience of the Amur Campaign was taken into account. The more battle-hardened Chinese forces managed to defeat the Dzungars at Lhasa in 1718, establishing a protectorate over Tibet. The armies of Emperor Kangxi pressed on to further devastate the Dzungars and to open the path for an earlier Chinese domination in the east of Central Asia.
In the sphere of culture, the devastation of France has ironically led to the strenghthening of French cultural influence abroad. French quickly became the language of the aristocrats as far east as Russia. French emigres were held in high esteem, and they became yet another of the many links between various European countries. All this, in turn, has resulted in even faster technologic development...
At the same time when Isaac Newton, Gottfried von Leibniz and many others were creating the scientific revolution, the industrial one was also beginning, and it was spearheaded by the French as well. Denis Papin, working in Britain, invented the first steam engine since Heron's aeolipile in 1700. Another French emigre, Charles Beaufort, also remembered about Heron and wrote much about his inventions. In time, he would become the ideologue of the Industrial Revolution. Those two inspired a third French emigre, or rather a son of a French emigre and a Polish noblewoman, Adam de Biran. He served in the Polish army during the War of the Holy Alliance and the First German War, oddly enough for a nobleman in the engineering corps, upon his own request. Jan Sobieski (who, if I forgot to mention it, died only in 1714 in this world due to a generally less disappointing life and with the feeling of having accomplished much) has also adopted many Condean military ideas, and was said to be quite concerned by the fact that, in spite of fairly good roads that were built for the logistical purposes, the horses with the supplies still travelled rather slowly (he noted that back in 1705, during the most crucial stage of the Transylvania Campaign). Besides, some disease at the time killed many good horses in the Polish supply department... or were they poisoned? It was Adam de Biran who suddenly got a brilliant idea while reading an account of Denis Papin's invention, written by Charles Beaufort... and realized that, if taken further, the steam engine could be used to power supply carts, or even some sort of wagenbergs, like in the Hussite wars! Most people back then were sceptical about it, but finally, the Academy of Cracow agreed to support Adam de Biran. And the steam-powered wheel of history moved on, crushing innocent and not-so-innocent bystanders alike...