That's exactly where both of your logics, although pretty good logics, falter. Remember when the two theories of the origins of the universe were the Steady State Theory and the Big Bang Theory? Well, although the Big Bang Theory had the upper hand and succeed in the end, it was credited that the Steady State Theory was correct when it came to the creation of the elements of our universe.
With that being said, in the situation of time in FF8, how about we look at it in similar terms. It's obvious that the Static Time Theory has an obvious upper hand against the Dynamic Time Theory. And yet both have a degree of credibility when it comes to certain aspects of the game. Perhaps, finding the connection with the two theories and conjoin the two would be the link that you guys need to determine the truth of FF8's description of time. Or maybe, you guys should adopt one theory and scraps the other, take what works in the scrapped theory, and attempt the find a suitable place within the adopted theory for the credible parts of the scrapped theory.
And here's what I think connects the two theories more than anything. The fact that the Universal Line of Time (ULOT) will continue as a straight line regardless of any influence besides Time Compression succeeding which in itself is and impossiblity. I think the ULOT is the key the both theories find common ground. And I think it's possible you guys can find a method that causes both theories, if not one more than that other, to work simultaneously.









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