I never thought I'd actually hear myself say this, but this update really hurt to read. I won't give spoilers, but you definitely described it perfectly. It may be the good timeline, but, really, it's anything but...
Also... is it bad that I've reached a point I hate Thanatos almost as much as I hate Jack, Dom and Memphis? His thing with knocking people out whenever they push his buttons has reached the point that the MOMENT he shows up on screen, I'm expecting one of, if not both of, two things. (1) Someone (usually Dave) is going to get knocked out because he doesn't like how he's being talked to and (2) he'll tell the group something new they need to do to stay alive, but won't tell them what or how, usually followed up by taunting them with "try it and find out" or "that doesn't work well for you". I mean, for god's sake, he claims he's seen what works and what doesn't, and says that he hates having to relive certain things over and over, so why is he doing things this way? Oh wait, it's because he's told he 'has to' by his 'master'. Sorry for the rant there, but Thanatos just drives me nuts.
I've reached the point I have a suspicion on who this 'master' is, or, at the very least, if said person isn't Thanatos' master, they're the one responsible for the fact the murders/deaths keep happening. I'm probably not gonna find out for a very long time if I'm right, but, in the meantime, I'll just keep reading and seeing if I spot any clues.
Oh, and for the record, Gryz, though it WAS hard to read, I still found the update to be quite an interesting read. I'll be curious to see how things go from here.