Think of it like this then, the Badlands are preexisting but are near Daybreak Town. And because the Graveyard is a huge, and I mean HUGE world. Daybreak Town could still exist within that land, it may even be fully complete with more than the Badlands! But the Badlands are the most extensive.
Oh, sure, this I could buy, and somewhat thought might be the case myself, considering it seems it might be the only "real" place other than Daybreak itself.
And I was referring too, Daybreak Town was not destroyed as the battle was fought in the Badlands of Daybreak, it was a error on my part.
This is the part I take issue with. Not only because we have seen so little of the battle and could be missing so much of what happens in the battle beyond the end of x[chi], but also because we have no idea what the effect radius of the clash would be. I mean, for one, supposedly this is when the world was still united or what have you, and the end result was supposedly the near-destruction of the world followed by survival of tiny remainders of light, yes? That sort of cataclysm would be sure to affect Daybreak in one way or another, and automatically assuming it's sealed and not destroyed seems a bit of a leap.