Okay, here's my theories/musings on some of this stuff.
Drangleic is huge, much bigger than the Lordran we explore in Dark Souls. I think parts of it may or may not overlap with lands mentioned in Dark Souls, particularly Vinnheim, as found in the description of the dragon crest ring, I believe. I don't think it's built on Lordran, though I initially did. It might still. I think Heide's Tower of Flame isn't Anor Londo, I think it's where Gwynevere and her husband Flann, the god of Flame(!) went when they left Anor Londo, hence the similar architecture and the presence of Ornstein, who I think is actually the real deal. Note the statues in the Cathedral that bear Gwyn's sword and armor. Gwyn is deified, but his visage has been forgotten with time. On the other hand, I was fairly convinced the Throne of Want is built on the Kiln of the First Flame. It just makes a lot of thematic sense. But it's hard to say, so I'm really not certain. But remember the ending: The maiden talks about linking the flame, but there is no flame in sight. You walk into a dark room, sit on a throne and the doors close. It's super weird. But it's suggested that the throne shapes the world according to the wishes of whoever sits on it. Link the flame, don't link the flame - it doesn't matter. That's what I like about the ending, because the game suggests both DkS1 endings can be canon, as the cycle repeats itself anyway.
The similarities to Dark Souls are more to do with the story's themes, I think, than the actual plot. It's stated many times in many ways that the cycle repeats - kingdoms fall and rise again on the same spots. The fire dies out and eventually kindles again, and a new undead curse rears its head. The stronger the fire, the stronger the curse. We have four Great Souls that are strongly influenced by the original Great Souls, those of Gwyn, Seath, the Witch of Izalith and Nito. In their descriptions it says that even though the Souls are fragments of their former selves, they continue to exert a powerful influence (paraphrasing here). So the Lost Sinner, who somehow ended up with the Old Witch's soul, tried to do the exact same thing, recreate the first flame, and failed. The Lord of Brightstone (Seath's soul) conducted terrible experiments and transformed his people. Note the room he is in is very reminiscent of the Archives. He imbued a spider with the old Paledrake soul and it grew terribly out of proportion. The Old Iron King was consumed by fire, like Gwyn. And finally, the Rotten is just a twisted monstrosity made of corpses that tries to make living stone dolls, it seems, but he cannot create life, which seems to frustrate him, looking at his intro cinematic. Whether they got these souls from Vendrick, or if the mere existence of the Old Souls influenced beings in the land and attracted certain characters, I don't know. It's possible that the Old Souls are what Vendrick took from the Giants. I think if we solve this mystery, a lot of things will fall into place.
Whatever Vendrick took from the Giants, I think he used it on himself to try and make himself stronger, but he had to abandon his soul in the process. We're told several times that he "peered into the essence of the soul", and I'm guessing his own, because he left it behind, probably when running from the Queen. Then again, his throne in the castle is a lot larger than the chair we find his soul on, so just as likely he did it earlier. In fact yeah, let's go with that. Again, huge question marks here for me is what did he take from the Giants, what did he do to make himself huge and rim himself of his own soul. And it also says that in the end, "he still held onto something dear", and "what was he trying to protect?". The King's Ring is the only thing in the room with him, which leads us to the Throne of Want, the Giant King memory and Aldia's Keep.
I straight-up have no idea what the Ancient Dragon's deal is. But interesting to note that he has a giant soul and is apparently "a prop; a false deity", I missed that dialogue. Created by whom, for what purpose? What interest could a dragon have in mortal affair to begin with? The curse doesn't affect them. Similarly, I'm baffled by Shanalotte. She doesn't say much of anything about herself until her very last dialogue, and that was so cryptic. "Created by dragons, contrived by men", I believe. Possibly the result of one of Aldia's experiments? Note that her right eye, the one you cannot see, is a different color, purple-ish. I don't know the significance of her feather either. It says "she imagined a world of endless possibilities". hmm.
A final note, with all the themes of reincarnation/history repeating, Dark Souls 2 has a very purgatorial feeling, to me. There are also strong suggestions that the Throne of Want has the power to change the world/history. I believe the history we get from Wellager is different than what we see in the Memories, but I'm fuzzy on the details. This complicates matters further. Perhaps Vendrick used the Throne to change the history with the giants. Perhaps he never got to use it. But the intro, immersing the player in water, which has very religious connotations, eg baptism, death in Hinduism, is very dreamlike. We then come to Things Betwixt, a limbo. Then we emerge in Drangleic, with no past memory. Seems like everyone in this world is either being punished for something, or is a mirror for something/someone in Dark Souls. Some of the area transitions are also completely impossible, like from Earthen Peak to Iron Keep. Maybe a lot of the plot isn't literally happening. Maybe Drangleic isn't even real. I know people are going to hate that idea, and I kind of do too. But I found the purgatorial tone, like everything is kind of a half-remembered dream, interesting. Especially with the prevalence of Memories, sins of the past coming back to roost, all the parallels to Dark Souls, history repeating, it all ties in together. Thematically and tonally anyway, Dark Souls 2 is consistent as hell, even though visually it isn't always.
If you read all this crap, congratulations. Sorry for wasting your time with my ramblings.
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