I do remember that this was in the game. It was the scions, mostly Minfilia telling us how it works. That when someone dies its aether becomes part of the land again and rebuilds into something new from the whole aether. I remember that because I really disliked it at that time. I dont like it when we find out how death and afterlifes works in a story because it takes the mystery away. And I like it even less when it means that there is no afterlife. So yeah in the past it seems that the scions understanding was that souls are reformed after death.
