The whole joke about story is that Tidus was right with his very first guess all along. He came in contact with [Sin] and [Sin] brought him to Spira. Rikku's nonsensical story (not that she knew Tidus was right) just confused him and made him believe he travelled through time after she just said "you're crazy because of [Sin]'s toxin, Zanarkand has been destroyed long ago".
Zanarkand is one big dream far out on the sea with dreamed people that are very well living, individual beings. You could say, A.I.s, bound to the dream, still as real as possible. They have a body and a soul/consciousness.



					
						
					
					
					
						
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