Just a little rambling here, but what if SB counted on outsiders, who brought supplies and other goods into town, losing their memories once they left town? That would have protected the town.
Possibly Ethan Embry was one of the individuals that procured things outside for SB. Gold lures him in to see if he if maintains his memories once crossing the line.
Most likely it’s Smee as I believe Ethan will be a storybook character (Merlin/Wizard of Oz/Peter Pan/etc.). I just wanted to throw the idea out there though.