The earth being totally covered with water was a long time before humanity evolved (we live on the land for a start) - geological events within the last few thousand years are not what that kind of evidence usually points to. You're right about the poles thing yobor. The ais does move around a little, but every once in a while the poles do swap over so that magnetic north becomes south and vice-versa and it is almost instantaneous, but there's no way it could melt any icecaps or anything - all it would do is make compasses point the wrong way and probably confuse a few birds. In fact we're overdue for this happening right now.
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