So my villages reconstructed the ruins into the temple, celebrated and for a short while they'd bring flowers to honor it. Now when I bring them in or near the temple they ignore it like it isn't even there. Is this a bug or is it meant to happen?

Looks like once they have the thing built, it's not really necessary any more!

Ah, but some might say that the restored temple is necessary for progress later on in the game, though...

I would think only if you can keep him/her alive long enough with thier talents!!