Hermes erased his own memories though, Venat's a smart woman she doesn't need to go "Hey Hermes remember when you erased your memories after sending the Meteia out to cause our world to self destruct?" She could have found a more conductive way to guide the Convocation into investigating the true source of the cause of the Final Days. They started disregarding her because she refused to open her heart to them and apparently wouldn't tell them anything besides insisting they were wrong to do what they were doing, but offered no way to solve things, and they sensed she was hiding something from them.
They are specifically using the past as their inspiration for a better future. They aren't disregarding the truth that Man and Dragon once lived together. They, including dragons, are hoping that these times will return again. Ala Mhigans still wanted to return home and did not accept they had lost it. They did not want to build a better future elsewhere, they wanted to build a 'better future' in Ala Mhigo. They still clung to their past.As for Ala Mhigo and Ishgard, a big part of their stories is that they can't go back to the way things were, and shouldn't: Ala Mhigo can't be a monarchy again, because it would take just one Theodric and they'd be back at square one, hence why they start discussing how they should govern now in 4.1.
Ishgard persues peace not for the sake of returning to the past, but because the Dragonsong war benefited no one, and so they began to change for this new future, even if may look superfically like something in the past, and even if those currently living might not truly see the end result.
There's absolutely no indication that it would have returned to normal. Just as Ala Mhigans hope for a better future where the pain of Garlemald's invasion will be forgotten, so did the Ancients work. But we know that the invasion will not be forgotten, and we know that the Ancients would not be able to forget the catastrophe. They in fact had no time to really recover and come to this realization because Venat's group started the Sundering, so all we have are the recordings of what ghosts say and Emet-Selch's weird "yeah Venat was right the entire time, we never would have won", even though the Convocation was working with not even half the information Venat had and purposefully withheld from everyone (including her own followers).But the ancients after the final days did truly hope to not just return to a sense of normalcy, but to act as if their tragedy never happened


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