This is my understanding: The area_name in CITY.TXT is supposed to reference one of the lookup_name's from MAPS.TXT, otherwise the game won't have a map to drop the player on when they click to enter the Town Map from the Green Circle.
The first map u enter after clicking on the green circle for the first time equals to entrance=0. Afterwards, it works exactly as u said, with the list and all.
I'm not sure if the area_name references anything. My guess is probably it was first designed this way, and later the developers simply didn't have any use for this entry, so it remains a must for city.txt format, but influences nothing.
EDIT: entrance=0 also works as the default map to enter, if u don't have the screen which allows u to choose entrances. So if u have a city with two maps, but no image for choosing entrances, then u will always arrive to entrance=0 once clicking on the green circle.
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