This is worth considering but it has implications. What if we put a Lumberjack and a Time Thief together on a board. Does the Time Thief undo the displacement of pieces when capturing a Lumberjack?
Turning back time should restore the original situation in all its details. You restore normal capture victims. Would you not restore the victim of an e.p. capture, when the TT captures the capturing Pawn? The advantage of this rule interpretation is that it is completely general, and you would not have to make special rules for cases where other weird pieces participate, about which side effects should be undone, and which not.
I don't understand where this idea comes from that castling is a King move. Obviously you move both King and Rook. If capturing a King also restores the Rook to its old location is pretty irrelevant: game over!
Wouldn't it be more elegant to say that the Time Thief first undoes the previous move, and then must be able to make the capture of the moving piece?
This is worth considering but it has implications. What if we put a Lumberjack and a Time Thief together on a board. Does the Time Thief undo the displacement of pieces when capturing a Lumberjack?