As someone who was around and following this game while it was still in early development I can tell why the “lore” of the Exiled Lands is so half-arsed. They literally didn’t think about it. It was not until the potential players started asking questions about it that they came up with the few silly “reasons” we know of. It just flat out didn’t occur to them that anyone would question WHY their character was in this place and couldn’t die. Same reason we don’t really know WHERE the Exiled Lands are. All the flimsy reasons and explanations FC has offered fail utterly under the light of even the most basic logic.
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