Just one little hitch with that theory. We all know what happened in PSO to the first civilization. Wherein we learn that at some point they created an AI to renew the environment ofmeseta pso2 Coral. This AI was finally infected by D-Cells and went rogue and killed off 90% of culture. Those paying attention will remember that D-Cells, were the reason for the Pioneer project in the first location. D-Cells had made it to Coral, via an asteroid or any such macguffin, and the authorities wanted to weaponize it.
So they put together the Pioneer job to monitor the original source of this D-Cells, and found Ragol. Going back to the point, PS0 happens 100 years after civilization gets nuked. For anybody who doesn't know already, Pioneer 2 flipped Coral the bird at the end of Episode III and colonized Ragol after the complete and total devastation of Dark Falz and Olga Flow following their duel to the death. Which is another narrative point that runs against PSO2.
I will go through the remainder of PSO2 narrative between what's left of Episode 2 and Episode 3. 1 last thing is that it is possible... that they THOUGHT he was ruined. And between the occasions of PSO1 and PSO2 Dark Falz destroyed Pioneer 2 while their guard was down. If that is the case, it would result in function as evidence that leads to the knowledge that Dark Falz cannot be destroyed. This knowledge of the immunity to complete devastation is immutable. So any Dark Falz being destroyed doesn't follow the exact same logic as exhibited in PSO2.
In short, it is likely that Dark Falz in PSO1 was just thought to be ruined despite"He is dead because we said so." Destruction and his return of Pioneer 2 would awake the Oracle fleet. In turn, ARKS would build to conquer him. Then they'd then possess the knowledge that Dark Falz can't be destroyed, just sealed. Thus leading to the event point 40 years ago when Dark Falz was closed on Ragol/Naverius. In the event the Photoners that fulfilled with Xion and constructed Oracle were Pioneer 3 (as clarified in another thread here), it'd really still fall in line. The only confirmation concerning time passed is that Dark Falz Elder has been sealed off 40 years ago.
This calls into question things was he sealed at a spot of ruin? How did the heroes understand therefore and he couldn't be destroyed needed to seal him? And how can they've got the capability to seal him rather than try to ruin him? The idea all solves this that the Photoners Xion cites were Pioneer 3 that fulfilled with Xion. Pioneer 3 could have known from Pioneer 2's information what Dark Falz had been (and then he couldn't be ruined based on their attempts in Episode 1 and 3). Xion being a catalyst for their photon ability could lead to her being the origin of their capacity to seal Falz Elder. And finally, since Xion had been their technological catalyst that enabled them to react quickly, the heroes could have responded to the destruction ofcheap Phantasy Star Online 2 Meseta Pioneer 2 even though they were finally too late to rescue it.