That does make far more sense to me. You can't recreate something entirety as it was before, Wizard's powers be damned!

The fact that he's saving people with evil monsters in them is still bugging me. What purpose do these 'Gates' have? Why is it that Earth needs people who can cast magic if they fall down hard into the villain hole when they give in to despair?

Nothing's really adding up for me here.

The Gates are the people with the potential to spawn more Phantoms. Thus, the possible number of new Phantoms is instantly limited, since there are only so many Gates in the world. The monster inside them that Wizard fights are their Phantoms (Wizard's is Dragon).

I don't see how it's confusing.