The White Palace is one of Hollow Knight’s most punishing optional areas — a platforming gauntlet of spinning saw blades and precise jumps housed in the shattered remains of the Pale King’s palace. It is also the location where the game’s most significant lore is delivered, entirely through environment.
The path through the White Palace ends in the King’s chamber, where a vision reveals that the Pale King was aware the Hollow Knight — the vessel he created to contain the infection — was not truly hollow. The sacrifice was flawed. The King knew, sealed the kingdom, and left. The entire premise of the game stems from a cover-up.
A deeper version of the White Palace exists in the Path of Pain — an optional extension of the optional area, designed to be one of the hardest platforming sequences in any game. There is no lore reward. No item. A small hidden room at the end contains a journal entry that confirms the player’s identity as the Shade Soul, but nothing else. Team Cherry put it there specifically for players who refuse to accept that they have seen everything.
The White Palace also contains the Kingsoul charm half — the precursor to the Void Heart, which is required for the True Ending. An optional area is mandatory for the canonical conclusion. Hollow Knight buries its most important content in its hardest optional content deliberately.

This is exactly why I love this game. So many layers underneath the surface if you just take the time to look.
Stumbled across this on a late-night session and couldn’t believe it. Your explanation finally made it click.