There world was built by the earthbound, even the ocean palace. they was to unwilling to actually build there world themselves, and in the end they needed the earthbound to help the survivers. The way they used there power, belived themselves to be better pretty much sealed there fate right off the bat.
The people became blind to reality and followed the Queen without question.
In there view nothing bad could happen because they was so powerful, and so they was happy to sit back and let the Queen do these things.