It's pretty awesome you figured out he was dead. I don't remember when it was said in red that he was dead at the beginning of all games, but if it came before Goldsmith, I don't think I suspected a thing was wrong. Same for Shannon and Kanon. My mind was blown by the revelation in Episode 7, but I never once suspected they were the same person or swapping clothes or even questioning why so much mystery surrounded Kanon's corpse and attention was put on Kanon/Shannon/Jessica/George love rectangle/triangle. Complete stunner.
I still think the end of Episode Six was stupid, but it has nothing to do with Shannon is Kanon.