I don't think she killed herself in front of him. And I don't think they were exiled. Everything seems to support he grew up in Guadosalam.

No, she was amazing. She knew that she could protect her son AND Spira better if she SACRIFICED HER LIVING BODY AND TRAPPED HER SOUL IN A STATUE FOR ETERNITY. That's not being terrible, that's being completely selfless.

EDIT: I did a search, and you're right about him being exiled. But I've still got nothing to show that his mother killed herself in front of him.