The first scratched out word is supposed to be "Lady", implying that at one point, Sinny was not regarded as a princess. But she has a new statue built for her later.
The idea of Lani being the lost princess would have been a brilliant twist! Or perhaps, to make the timelines work better, a descendant. I wish I had been clever enough to think of that haha. But if the game ever gets some kind of sequel, that would be really fun to incorporate.