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Reminder that, contrary to the propaganda that Anor Londo would like you to believe, Izalith wasn't "overrun" by demons. Demons in Izalith were respected members of society that chose to undergo their transformations. The statues and architecture of Izalith implies a culture in which these demons lived peacefully before the invasion of the silver knights. They were creators, sculptors, and practitioners of lost fire sorceries that are now lost to the annals of history. People were not forced to undergo these transformation as well, as seen by the daughter of chaos who guards her mother's bed. What forced their radical transformation to a more warlike society was their estrangement from the kingdom of Anor Londo and the eventual invasion that would come later. This destabilization also affected how the chaos flame affected the bodies of the people it transformed, causing horrible mutations to start appearing such as the Ceaseless Discharge who only underwent the transformation to avenge his sister's death at the hands of the Silver Knights. Izalith became lost because Anor Londo buried it.