Sensing a theme...
Children books, children's toys and children's drawings all play a significant role in Fromville.
They shape the town, the monsters, the events and the abilities of the townspeople. Its got to connect to the origins of the town, right?
Maybe Tabitha and jade inadvertently created fromville out of their guilt for not having saved the children. And they have doomed themselves to repeat the cycle until they can solve it. The dolls were Tabitha's and they became monsters.
Im not sure how sold i am on that theory but I thought it was interesting enough to share.