>>713135013The amnesia actually runs really deep through the plot. It's why Cid keeps acting like a busy father who thinks his kids know what all this SeeD business is really about through disc 1, while Squall gets annoyed about how "weird" the headmaster keeps acting with him.
Childhood fights is why Seifer and Squall beef with each other so hard but Seifer still risks everything when he thinks they're in danger, and Quistis getting caught up in it trying to play the mediator. It's why random dudes in Fisherman's Horizon get so annoyed with Squall when he doesn't remember them, when they were the ones who had turned Garden into the school it was in his lifetime.
It's the framing that makes disc 1 Squall wear the mask of the cold mercenary SeeD- with SeeD as this infallible monolith in his mind he grounds that identity on, allowing for the snowballing deconstruction of what he thought SeeD was and his own rigid identity in disc 2.
It's the narrative device to put the cost of their destiny (SeeD are empowered as soldiers because of their signature use of Guardian Forces) against realizing what it is they're even fighting for (that teenage love experience of Squall and Rinoa), and so on.