I don't see this. Although I agree that it was stupid to have them all grow up together and not remember, there was plot a good twist.
It tells how they were raised and accepted into SeeDs. It explains further about the use of GF's and we get very little information about them except they are good for winning battles. It explains the transformed Matron to Edea and not leave us with how the heck did she know Cid. Also it added that Matron wasn't bad it was Ultimecia. People misunderstood that part as it was such a rush into a background. It also gives a good incentive as to the past, Squall and Raine, Seifer and Zell and so much more. If you are looking at how does this tie into the earlier parts of the game, you got it. It unravels all about the past. If you are wondering how it effects the game afterwards, it does that too. It shows Ultimecia controling Edea from a different time (the future). It leads to the time lapse and where you go far into the future.




) and the whole orphanage scene was poorly utilized just for the sake of having a twist that barely added anything to the plot. They could have said they were aliens and it wouldn't have made any difference to the characters cause the whole plot point is dropped as soon as it was mentioned. Not to mention most of the cast becomes a non-entity and Ultimecia is one of the poorest written villains in the franchise with the possible exception of 
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