i figure it is some form of illusion. it was all too perfect, and even ash recognised that on some level.

I have no idea what's supposed to be going on; maybe it's an illusion, maybe they'll get sent back in time again and things turn out as usual, but one thing's certain, life can't go that well for Ash! It never does!

So episode 3x01 aired and the only nod to the time-travel-mess-up came from Pablo. "When we came back - nothing was changed"

I hope this is not all what we get, but a hint for more to come.

Still crossing my fingers for the Ruby trap ;)

Something is definitely planned because clearly they are acknowledging it:

End of Season 2: Ash mentions how everything is too perfect.

I'm not watching season 3 yet, but I'm aware of the Pablo quote.

My idea that I really hope happens (but I highly doubt) is that it's a timewave they beat to the present and halfway through the season, things suddenly change around them.

It would be like A Christmas Carol, where Ash experiences his life if he wasn't the chosen on.

My other guess is that they are in some kind of illusion either set up by the original Ruby (that turned good) because remember she gave Ash a nice life ("the deal") and maybe this was her final act before she died: showing Ash why he's the chosen one through this big trial and when he sacrifices himself, he's suddenly rewarded with a life without the burden of being the chosen one.

Something like that.

And maybe Kelly and Pablo don't know who he is and everyone is a total stranger and they somehow meet again without any knowledge of their badass former life.