It is remembered.
ANYWHO.
When I spoke to wotc people at PAX last year, I asked about retcons (I specifically referred to the Nissa origins thing because it was fresh and I was still really upset by it).
I was given one of two answers by various people throughout the weekend;
We retconned it because it doesn't match our current vision (ie, Nissa being a bigot).
We retconned it because the original bit of material was not widely known/accepted (ie, Nissa's single paragraph of introduction in Duels)
The former I can understand. Members of creative come and go, the old books were written by commissioned writers who didnt necessarily coordinate with creative, etc.
The later bothers me somewhat because it was important to SOMEONE, and in the cases of some details (changing Nissa from a reformed bigot to a granola girl), the end result was basically the same so I wonder WHY it needed to be done in the first place.
ALSO.
I've been following
several convos Kelly Digges has been having on twitter recently.
But basically, the way I'm interpreting it anyway, Nissa's intro in duels describing her as essentially an elf nazi was filler text. It was so small and inconsequential that they didn't really consider it much when they started developing her as a character in teeth forward.
So that brings us to a potential third reason for retcons
3. Fans latch onto inconsequential details and run with them before creative gets to set something in stone.
I am willing to attribute this to the darker times when magic creative was more of an afterthought than it is now, and the relative lack of communication between the fans (read; vorthos fans) and R&D at the time.
I feel like this sort of thing will be much less common going forward, now that creative is on basically equal footing as design and lines of communication are better.
Basically what seemed to happen was, Duels came out. Us vorthos jumped over the new character and what little we new about her. We obsess over it and digest it, as we do. Wizards figures out a good place to use Nissa. Severly underestimating the reach duels had at the time, they ignore her previous characterization there, thinking that it reached so few people it's basically worthless. They develop Nissa as they want to do, not directly contradicting her previous characterization as a bigot, but not directly supported by it either.
EVENTUALLY, Origins rolls around, and they retcon what they want to do, as is their prerogative for better or worse.
Some of us, me especially, perceive the Nissa retcon as being bigger than it is, because in our minds we perceived Nissa as one way (reformed bigot) and creative hadn't intended that to be her perception.
I might be overthinking some of this <_<