Biomancy: "Does Healing Dust exist?" and other questions
Jacques Schnee is a man obsessed with acquiring more wealth and prestige. He was probably the single wealthiest man in the world. If Healing Dust existed, he would likely own the largest supply in the world, and he would have forced Weiss to use it to heal the scar on her face to maintain the image of the Schnee family. I doubt Weiss would want to keep the scar just to spite her father, if only because its symbolism of her freedom would be mixed with its reminder of her mistake against the Arma Gigas, and at the time she was a fierce perfectionist.
There's also the theory that Dust is the crystallized remains of First Humanity, and "colored" by whatever magic they most or last invoked.
Ozma died of sickness. Salem, who apparently had little to do in her prison tower except practice magic, could not use magic to cure him of the disease or to heal his body to help him outlast it. Nor did she manage to find anyone else capable of doing so for a man whom Jinn described as a legendary hero; the sort of man that many people would want to repay, or to owe them an enormous favor.
Yet, Hard-Light Dust proves that artificial forms of Dust can be invented. If "natural" forms of Dust are determined by the forces that First Humanity conjured, then artificial forms of Dust might produce effects that First Humanity never considered using magic to conjure.
It's possible that more applications for magic existed than First Humanity ever survived to discover. For example, we can speculate that the Wizard discovered how to use his magic to shapeshift into animals, judging by how he could give limited forms of that power to Qrow and Raven Branwen.
Therefore, it does not seem impossible for the scientists of Remnant to discover how to artificially create Polymorph Dust, for temporarily turning creatures into other sorts of creatures. (Perhaps someone in the world already has discovered it, but is keeping it as a personal, trade, or national secret.)
But more than shapeshifting, if there was one form of magic that the Wizard would seem most driven to discover (on his own, or with an answer from Jinn in a previous cycle of questions), it would be healing magic. Perhaps sacrificing more of his power to gift Qrow and Raven left him without enough strength to heal Amber. Or perhaps he did tend to Amber's physical injuries, but Salem's draining Grimm had rendered her incurably comatose by ripping out part of Amber's very soul.
But if Ozpin has such spells, they clearly aren't enough to restore Yang's arm, or else he probably would have offered to do so, with a cover story that Oscar (or someone else Yang met along the way to Mistral) had a Semblance that allowed it. Neither did Ozpin share any memories of such a spell with Oscar after they learned Maria was born with Silver Eyes.
Remnant's scientists certainly must be hard at work to discover Healing Dust on their own. Plant Dust seems like the most obvious place to start. Discovering Polymorph Dust might be a dead-end that nevertheless serves as a useful point of reference for exploring different combinations.
A Dust that creates animals rather than plants would seem like the most useful place to start, but I doubt that First Humanity bothered to use such conjuration.
Plant life is extremely simple compared to animal life; it totally makes sense that if you could magically create a seed and keep creating more nutrients, the seed could rapidly grow and form with the natural replication and growth process of plant life. First Humanity would gladly conjure plants for farming, gardening, and combat.
But animals have to go through an embryo and fetus stage, which would be really messy to attempt outside of a womb, and extremely rapid growth would be at best produce a naked adult with the undeveloped mind of an unborn infant.
So, no waving your hands and conjuring a swarm of ravens to attack your foes. Even a success would produce a creature fit only for slaughter. Far more disturbing than simply conjuring an endless supply of plants for your livestock to eat so that they can produce more livestock for you in the natural way.
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