It's likely that even if they remembered them, they willfully rejected the memory, thus preserving the integrity of a lone Zanarkand. Don;t forget that DZ is an actual location in Spira, just far removed.
The opening FMV shows DZ as being a lone city floating in the sea, with miles of sea around them. If you dumbed down the intelligence of the denizens, they would fear the ocean, because people would "get lost," including the case of Jecht, who survived. But like the REAL ocean on Earth, you swim out too far, there's no hope for you.
When Zanarkand was attacked by Bevelle, one can either assume that
A) they had not existed yet, so the ruins came from a later date
B) they had already existed, and been destroyed
C) they were not allied with Zanarkand in the war, thus preserving their intact-ness
D) Yu Yevon just plain didn't care if they got destroyed, and cared only about Zanarkand
Of course, this could lead to a wild amount of theories about the ruins, which are not mentioned here, but for the sake of argument and sanity, don't blow the fact of the ruins out of proportion. This is where distortions and false theories will come forth (R = U, anyone?)
Those changes are irrelevant. DZ was created at the time of the end of the war, which means that no one else could have been involved, unless they happened to suffer a similar fate as Zanarkand. The war originates in FFX as history; FFX-2 tries to make a story out of it.
Yes, the second part of your statement is correct, if you are referring to Dream Zanarkand.








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