And that there was a Tediursa in the film ash saw, which he had never seen before Johto.
While I would agree with you, I think that the writers sort of forgot that Teddiursa, Ursaring, and Azumarill didn't exist in Kanto, so the movies made no sense. (If I do manage to do my long-stewing "old food in new cans" re-dub fanfic idea where we look over Ash's adventures with an original companion traveling all the way with him, I'd change those flashbacks so that they were realistic.) However, my theory is that maybe Ash knew about all those Pokemon, but they were never seen in Kanto except in stories.
Meh, the only thing I hated was that parody of the evil Japanese manga with the butt-ugly gay Clefairy with the ugly face. Eagh...
EDIT: I really think this was a great episode, even if I didn't keep it because of the ugly Clefairy in the flashback Ash had. (Japanese are eccentrics.) I find it a nice plot about how this guy shows old movies to these small villages that can't afford theaters. Even if Dogasu was griping about people getting excited over a silent movie, I find it nice that they had silent movies in the anime, considering that it's a throwback to the early movies of yesteryear.