Don't read this thread unless you have played the first game and the second game all the way through at least once.
Ok going to put some bullet points out first.
- Klonoa is a dream traveller.
- He serves as an avatar who befriends and protects dreams.
- Once he serves his purpose he is ejected and leaves the dream as the player. who represents Klonoa, wakes up.
- His memories, just like dreams, become fuzzy and faded, so general amnesia is involved.
- GBA games canon and any games outside Klonoa 1 and Klonoa 2 for the playstation are completely separate and unrelated and completely throws all of this out the window
In the first game, Klonoa is friends with a Wind Spirit named Huepow. It eventually turns out that after saving the dream from a nightmare, Klonoa is in fact not of the world, an alien being to it, and Lephise's song effectively removes anything alien from the dream, including Klonoa - The song of rebirth.
If you felt sad at that ending, then good, that's what Yoshizawa intended. You are Klonoa, and if you played the first game, the sadness you felt in the first game continues into the next game.
Here we have the name entry to emphasize the fact you are Klonoa. Watch Klonoa in all the early cutscenes; In this game Klonoa displays almost no emotion whatsoever.
The reason to this is because Klonoa has locked away all of his emotions. This is his (your) dream that he has trapped himself within to forget the events of the previous game. The game does a good job of making you forget what's happened in the previous game too - nothing of the sort is mentioned.
Appropriate given the Japanese title of the game is 世界が望んだ忘れもの "That which the world wanted to forget".
The poisonous cloud that eventually leaks out disturbs the fake tranquillity that Klonoa has erected as a giant wall to block out negative emotions begins to affect the priestesses who effectively are what's guarding Klonoa from "sadness".
This is why no-one else seems to be affected by the poisonous gas.
Now here's the reason that within the canon of the main playstation games that Klonoa and Lolo are not a couple:
Both Lolo and Leorina are part of Klonoa's dream, part of Klonoa's psyche and serve as his guardian angels and conscience, of conflicting opinions.
Everything within Lunatea is in fact within Klonoa's psyche, it is his, and your dream world following on from the events of the first game - Klonoa being in a relationship with Lolo is effectively him being in a relationship with part of himself.
This becomes clear once you reach Hyuponia. It comes out of nowhere, this is Klonoa's memories resurfacing from the first game, that of which he wanted to block out.
Hyuponia is named after Hyupow from the first game - This is no coincidence. You may claim that the English version is called Huepow, but please, when the original Japanese katakana is identical, you can't really argue with that.
The King of Sorrow's similarity to Klonoa is what represents Klonoa's sadness from the first game and Hyuponia represents all the memories he's tried to forget. He is a large part of Klonoa that was separated from himself.
If you look at the background in Hyuponia you'll notice scenery and objects from the first game, like for instance Grandpa's room, grandfather clocks and rocking chairs - repeated and dotted all over the place, obviously representing one of Klonoa's fondest memories from the first game.
Further accentuating this, which is rather fun, is the music that plays in Hyuponia.
Grab a copy of the soundtrack to Hyuponia, take an audio editing program, and play the music forwards
with headphones on. You'll notice songs from the first game being played.
Upon defeating the King of Sorrow he disappears. Does this mean the King of Sorrow is dead? The opposite actually. After he rings the Bell of Sorrow, King of Sorrow returns to being part of Klonoa - He's once again become an individual able to experience emotions.
Watch closely in the final scene. Klonoa, who has not displayed any signs of sadness throughout the entire game, cries in the final scene, and a teardrop falls from the corner of his eye as he says goodbye to Lolo.
Once he / you leave the dream, the game says Good Morning [INSERT NAME HERE]. It shouldn't take a genius to figure out what that means.