Yeah, but we didn't lose the history of those settlements either. If these are mysterious ruins, then we would have to have forgotten they were there, and these are some pretty deep ruins. A long time would have had to pass to cover them up and forget who and why they were built. Maybe 700 years is enough. I would tend to think based on the setting that it would have had to have been much longer.
Back on the textured dome and lighting. Yeah, I could see where people would complain if the lighting was too dramatic, mainly because you have technical issues with darkness. Maybe it could be solved much easier by renaming the crystal and dealing with it in the physics of the world instead of trying to make the game match it. One thought I had would be to have the crystal pulsate over time (long periods, don't need strobe lights everywhere) where it changes color depending on the seasons. A typical white light approach in Summer, maybe a bluish hue in Winter, greenish in spring, gray in fall. Explain it by saying the crystal is in tune with the seasons of the surface world... where ever that is.... another one of those HUGE areas you're going to have to work out sooner or later. Nothing dramatic either, just subtle shadings to match what is being written.
And the texture... well, be it as it may. I just think if the setting is a huge underground cavern in the middle of a massive stalactite, it would be much different than a cloud filled sky. Nuff said.
Did someone mention farming on the top level? So where are the farms?
(don't bother, we know they're coming).
But again, just discussing and throwing ideas out. I am just going on because when I first read about PS I thought there was something unique here, but it seems to be taking a much more traditional MMORPG approach. Lots of time to see it come back though. Still 7 more levels to go.