It sounds about right. As I understand things, the characters fall into these catagories:

Legionnaires and others who have had their lives altered by HH's retcon. People like CSFB, Vizh/Functionary, and so on. This makes up the vast majority of the population of the world... they don't really remember what the Universe used to be like, although some of them have an inkling that the current state of things is wrong. It's assumed that if things are fixed, they'll revert back to the way they used to be (though whether they'll remember this adventure is unknown.)

The Moderators "Gatherers" (for lack of a better term): Before HH's retcon, The Moderator had assembled a team of "heroes" plucked from various alternate realities. The Scarlet Lawnmower, Link, Helen McAllistair, Doorman, etc. It's assumed that HH's retcon didn't change their personalities or their histories, aside from making them suddenly the premiere heroes on Earth.

Those "outside" of HH's retcon, such as Lara, Lui Xi, Mumphrey, Samantha, Lisa, Chronicler, etc. These characters haven't been changed by any of this, and still remember what the Parodyverse is "supposed" to be like.

There may be another group... characters that didn't exist before HH's retcon (or were dead in regular continuity). This may include Brap and Salieri, and who knows how many others. If the retcon is undone, it's possible that they may no longer exist.

Does that seem about right to everyone?