Right, admittedly I'm a bit hungover and have fallen victim to my own headcanon here. Because I spent so much time researching BC and then trying to resolve the problems it posed, I have overlooked the original issues. Yes, they messed up Barret's backstory from a Shinra perspective. I agree there was really no justification for burning down Corel except for Scarlet's personal malice. The last scene in Episode 16 is President Shinra ordering Scarlet to Corel as "the Reactor there has exploded".
Glad we agree there.
As for the "me and Dyne were out of town for a few days" could mean anything. He may have meant he was working in the mines for a few days.
He actually said they were out of town visiting a reactor under construction, and were on their way back from that when the massacre happened.
The mines don't seem far enough away that he couldn't have gone home each day. And why would he have been there alone to get things started if it was normal for the workers to stay in the mines for days at a time?
During the episode, he never actually learns that AVALANCHE are the villains or that it's the Turks who are trying to stop them.
But this requires we see Barret as an idiot -- that once he knows who the Turks and AVALANCHE are, he doesn't put two and two together.
And don't forget his grievance is with Shinra burning down his hometown, not the destruction of the Reactor. If you remove the reason as to why Shinra burned down Corel, the rest is not actually a glaring contradiction.
Though true, if the premise is shaky, it's hard to swallow what follows. Kind of like how the third "Pirates of the Caribbean" movie would be good if the second didn't have to exist to get us there.
Again, I disagree with your interpretations. While Red to whine about being the last of his race is clearly wrong from a continuity POV (and I don't actually remember this ever happening - but I haven't studied that part of the game in a while), I think most of his issues are with his father. This has no bearing whatsoever on Dinne so I don't think her introduction into the story has much bearing on FF7 other than it should have been mentioned.
Though his issues with Seto are definitely his main concern, he does mention being the last of his race, immediately upon arrival in Cosmo in fact:
Here is where I was... I mean, ...this is my hometown. My tribe were protectors of those who appreciate this beautiful canyon and the Planet. My brave mother fought and died here, but my cowardly father left her...... I am the last of my race.
And, of course, the topic comes up again in Bugen's death scene.
Fair enough, but bear in mind that between the Zirconiade incident and Barret's AVALANCHE blowing up Reactor1, the Shinra thought they had brought an end to all the conflict they were involved in. No more Crescent Unit/Wutai remnants, no more Genesis/G Army and no more Fuhito/AVALANCHE. AND why would they bring in more people when they were on the brink of being shut down? The same night the Turks are reinstated in Shinra, Reactor1 is blown up. There is no time to bring in anyone before that. According to canon, FF7 takes place over 3 weeks which isn't a lot of time to bring on more people for the task, not to mention that OTWTAS: Case of Shinra reveals the other Turks were around anyway to unofficially help out if needed.
While you're right that events happened
very quickly, if Barret et. al.'s activities were disruptive enough to warrant crushing an eighth of the city and making a move to take Aerith by force after waiting 15 years for her to come willingly -- well, surely you see my point? All this happens in the span of a few days (11 Turks lost, two reactors blown, Sector 7 destroyed, etc.), but Reno taking a few days off for a work-related injury is the catalyst for someone to finally say "We might need more personnel"?
In one of the first episodes of BC, more Turks got brought on board (and sent to look for new SOLDIER recruits) after much less disaster.
As for the other Turks still being available, one gets the impression they would have only been on hand for those few who knew they were still alive. Reeve knew, but how likely is it that President Shinra did?
I think that was the whole point. It automatically makes you associate them with dark dealings.
I don't doubt it, but the blue set them apart. =(