In episode 1 Colin told Bigby that you can't erase peoples memories but in episode 2 Crane erased the cops memories so they will forget seeing Snow Whites head. I am just wondering if they planned that irony.
I think Colin meant that hypothetically. Crane even says in Ep.2 that the spell is very expensive, so only a select few Fables would be able to afford it.
When you say "they", do you mean the staff? because they Have to know what will happen in every episode, because they are the ones making them. However, there Was a major rewrite between season 1 and season 2 (or was it 2-3?).
I hadn't noticed that and it would be funny to imagine Crane erasing Colin's memories after that.