Agreed, but the way I see it, the battleships fly OVER the party fighting the marbol at Silvertear Lake, past the aforeshown Silvertear Falls, and then fly south to Mor Dhona - Notice the crystals coming out of the ground? Those are still there in Mor Dhona now - just the trees are gone after the dragon (presumably wyrmking bahamut) blew up in the airship crash and sent all the other primals flying. I think the character is seeing Mor Dhona's destruction via the Echo.