What tools? I wouldn't use the weapons you get from the chief, because those seem more like gaming devices. Also I need to object to this discussion because I see no relevance in it taking place. If you have a point to make, make it. Do not give me the fluff.
Alright, I will list various instances of tools or items that clearly imply tool use.
Those clubs they carry around for one. Those drums that get played when Ayla throws the feast. The clearly sewn bikini-like clothing that the women wear, Ayla's fancy tailored outfit, the northern village chief's robe and headpeice, the necklaces that the dummers wear, etc. Carved bowls. Alcohol brewing equipment. Hut making. Pottery. Rope making. Fire spits. Wood working. Totem carving. What might be fence making. And though it isn't exactly tool using, the fact that they knew how to ride Dactyls implies the beginnings of animal domestication.
But entire purpose of this is that humans evolved. Because we do not see a physical or intellectual development, the magical development is used to explain such evolution. However, you are supposing an unlikely evolutionary pattern (Lavos influence = develop magic in humans, non-lavos influence = develop magic in a totally separate species).
Our World=/=Chrono World
There are things obviously based on things and events from our world, but the development of technology is one of the more apparent things that does not follow our own technological timeline.
Quite true. However, technological development of any kind implies a physiological development of a similar kind. Which is to say, if they're crafting swords, they're intellectually on par with sword users.
Was the FF in RD a splinter from Lavos as well? I forget...
Not yet. It was still purely dreamstone and dreamstone was at that point still a stone. The FF, especially as displayed in CC, displays powers that the dreamstone never had (indeed, if the Dreamstone is the Frozen Flame, then the Masamune and pendant are the frozen flame as well).
That whole statement in Chrono Trigger really bothered me. There really is no evidence presented that Lavos caused mankind to evolve.
Depends on what you call evidence:
That one was known as '"Lavos!"'
The great crimson flame......
Wielding absolute power,
Lavos buried the dinosaurs -
the kings of the land -
in the space of a night.
However, the timid '"apes"'
who had lived hidden in
the forests...
...came into contact with
the crimsom flame
that fell from the sky,
and evolved into '"humans."'
In the eyes of the Dragons,
we humans are the foes...
A brain that has developed abnormally
to 3 times the original size in the
span of 3 million years...
We humans have evolved at an
enormous rate because of our
contact with Lavos's flame...
However, as a counter point, the game really uses a bad definition of evolution, generally using it more in the "develop to a higher state" sense than the more accurate "change to best fit the environment" sense.