Sheesh. Are Bregalad and I the only people who have played Tactics Ogre around here? Or are the two of us the only people who care to understand the plot?
Oh well, let's get down to business...
1) Once Ronway and co. are dead, you are called the leader of the Walsta Liberation Army again. How is that ? It makes no sense, you have been their enemy since the Baramus' massacre, and it turns out you aren't even Walstaian in the 1st place, and the wast majority of the WLA soldiers aren't either, and your goal isn't even to liberate Walsta since the end of the 1st chapter. In short the "Walsta Liberation Army" name is meaningless and yet they continue to use it... Is it a translation error or something ?
Well at this point, Denam and company are the only Walister faction with any real power in Valeria. With the duke and his followers gone, the Walisters' only choices are to join Denam or get conquered by the Bakram. It doesn't take a genius to conclude which side they'll pick (no offense). Aside from that, Denam grew up among the Walister (despite being Bakram himself) and cares for that group of people. After all, the only reason he left the Walister Resistance was because he disagreed with the duke's methods.
2) You eventually discover your dad who is ill and dying, but was he in this castle the whole time along ? You already visited it once before, but there was the last resistance of the gargastan army here instead. How comes this place have changed to some kind of sanctuary And how comes Plancy is here ? Where has he been the whole time ?
The Dark Knights stormed Heim after the fall of Galganstan and held Prancet captive. They used poison to torture him in an attempt to gain information, but the plan was unsuccessful. When Catiua was placed at the throne by the Bakram, she demanded his release. After that, he was taken care of by the Order of Philaha (the main religious group in Valeria) since he was an abuna (in-game lore's term for a priest). Unfortunately, they could not cure his poison in time, and he died shortly after talking to Denam.
3) The scene where you discover Lans' (the Zenobian Lans, not the dark knight) corpse is very disturbing. Lans (the dark knight) said explicitely he wouldn't kill him. But apparently he still tortured him to death or something in the like.
Yeah, Tartaros went a bit too far with the torture and accidentally killed the guy. In the PSP version's new game plus mode, there's actually a quest where you can save Lanselot, but he turns into a wheelchair-bound lunatic; which makes sense after all he had been through.