2) Huge plothole. Nevermind the Time Variance Authority because they are toast so who cares.
And take Goblin for example… if he doesn't die, then what becomes of the events that follow? Harry's need for revenge no longer happens? Spider-Man 2 and 3 have a different series of events play out instead?
1.) When the spell to forget sets in, the next scene shows the Bugle talking about how Spidey should reveal himself. That got me thinking. Why does the Bugle's own footage and everyone's video of him also forget? Wouldn't they still have that footage? And if they don't have the stories anymore, wouldn't they be awfully confused about their lack of footage from that period?
2.) Either way, Raimi's Peter still remembers Harry dying in his arms, so it seems like stuff doesn't change.
Such that Goblin is from the Spider-Man 1 universe, Ock is from the Spider-Man 2 universe, and Toby & Sandman are from the Spider-Man 3 universe.