Charcoal, you(and other Compilation Haters) have to understand one thing. Even if your theories make sense to you, you guys don't have ANY authority to decide what is canon/official and what is not. SE created the games/movie/books, and ONLY them have controll over the story. They are the "gods" of FFVII universe, and anything they say is the truth. FFVII is THEIR story NOT yours.
Even if one or two things contradict each other, doesn't mean it isn't canon. Just means that is bad story-telling with some plot-holes.
SE created the FFVII series. They know more about it than you.

But i think that i understand why you(and other Compilation Haters) hate the Compilation so much. During many years, people analysed FFVII and created giant FAQs and theories about it. And wasted their time doing that. Then one day, SE say "Sorry, but you are wrong". After that, many people were pissed, because they wasted their time in giant and intelligent analyses, that were proved wrong by just a few words of SE. Because of this, many pissed people refused to agree with that, and decided that their well explained theories are better than the word of SE.
I understand that. I would be pissed too. But like i said before, the fans don't have authority over the FFVII universe to decide what is, and what isn't. This is the sad truth, and we have to deal with it.