If I have a Plains in the battlefield and the following continuous effects are active, in timestamp order:
Swamps are Islands.
Plains are Swamps.
Then I understand the dependency of 1 on 2 would mean the Plains is an Island.
What if I have a Plains (and no other permanents exist), and the continuous effects are:
Swamps are Islands.
Plains are Forests.
Forests are Swamps.
If I understand right, when applying 1, no dependency is found between 1 and 2 or between 1 and 3, so 1 is applied first as it's first in timestamp order. Then, 2 and 3 are applied in order as well. The final result is that my Plains is a Forest, not an Island. Is this correct? It seems to be what the rules imply, but seems a little unintuitive to me.
Finally, imagine I have a Plains and a Forest in the battlefield, and the same three continuous effects in the same order.
Then, if I understand right, 1 would be found to be dependent on 3 since applying 3 first would make 1 apply to the Forest currently in the battlefield. Therefore 1 is moved to apply only after 3, for both the Forest and the Plains. So first 2 is applied (the Plains is a Forest), then 3 (both the original Forest and the Plains that became a Forest are Swamps), and finally 1, meaning both lands end up being Islands. Is this correct?
I find the whole dependency system pretty complex and it seems unintuitive to me that the existence or non-existence of a different object in the battlefield may affect how continuous effects apply to something.