  There are significant discrepancies between observational evidence and the
hierarchical galaxy formation theory with respect to the shape of dark matter
halos, the correlation between galaxy characteristics, and galaxy evolutionary
history. This paper introduces a modification to the hierarchical galaxy
formation theory that hypothesizes that dark matter enters into highly
elliptical orbits, and is therefore, effectively redistributed during the
period of galactic nuclei activity. Adding this modification, the theory more
accurately predicts the observed development history of galaxies and their
resulting mature state. In particular, this modification predicts that galaxies
grow in size, but not in mass, at an early time (~7 to 10 billion years ago),
and develop their characteristic rotation curves which, at large radius,
exhibit a relatively flat shape versus the expected Keplerian decline.
