Season 1 in Story Journal?
No Season 1 is not in the story journal, no they can’t put season 1 in the story journal because the majority of it dealt with the open world. They would have to overhaul all of it (and that’s a lot of LS to overhaul) in order to make it so that it can be played in instances.
Season 1 isn’t in the story journal because the content wasn’t designed in that way. While there were some instanced areas, most of Season 1 was open world content and usually designed to require large numbers of players, both things that would require some major reworking to fit into the journal in some fashion.
They’ve said before that they would like to add Season 1 somehow, but they also have no ETA for it. They also haven’t committed to it happening “eventually,” either—I would guess it’s something they’d really like to do, but it would require too many resources, even compared to developing new content. They haven’t ruled it out entirely, but I don’t think they have anyone spending the majority of their time on it.
Unfortunately, the odds of Season 1 being altered to the point where it could be introduced into the Story Journal is very low, between the nature of the content focusing mainly on open world events, as well as the upcoming expansion probably taking up much of their resources.
And with ArenaNet’s seeming inability to fix lingering problems in the past, or breaking things that were fine before, It’s something they’d find a way to mess up somehow.
They will be reestructuring LS1 content to fit into Story Journal, but they just don’t have a time frame as this demands a reasonable amount of time/effort/money/people/etc. We already have many instances in Open World, this would be no different.
@Edit
On a further note, they could consider large scale battles as raids. So some story CHAPTERS would automatically be raids and allow up to 24 people.