Okay, I can personally confirm that you don't in fact have to fight the Elder Wyrm.
But let me tell you, it's bloody difficult to get through. Well, at least I thought so. I tried to fight my way down the bottom part of Golomore Jungle, only to get my ass handed to me on a platter by those Hellhounds. Feh!
So I went back up, teleported back to Jarhara and upgraded my weapons the best I could (Eruyt Villiage doesn't sell weapons. Argh!) and decided to level up a bit and fought my way back to Golomore Jungle instead of hopping the chocobo.
Fought my way down again, got totally pnwnd by those hellhounds.... AGAIN. So I decided that fighting wasn't going to work, so I held down R2 to flee past them. Went down and ended up having to go into the Feywood (did I mention I'm only level 25, and the Feywood roughly level 40?? Yikes!) So I hightailed it to the Paramina Rift.
Then fought my way back up again and now I'm in Mt Bur-Omnisace, without fighting the Elder Wyrm. I'm going to go back and fight it though, I want the rewards from Montblanc.
So long as you're fleeing, and you have a good idea of where to go so you don't get lost and overpowered by monsters, it can be done!
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