I think the huge wall of text was putting people off, so I'm making a separate section for the story.
Hundreds of years ago; a group of advanced beings, existing in an secret society hidden away from the rest of the Earth; found there may be truth to some of Earth's Stories; fairy-tales and fantastical literature; that had yet gone unseen.
This is what they found; there is another side to of our planet that has gone unseen to most; not a mere pocket of reality, but a dimensionally shifted world mirrors our own; one that is not separate, but an extension of the world we know. A world that greater resembles that of our fantasy, where men come into contact with Gods and Witches and Druids and Airships that appear to be powered by Steam.
Even with this; they reasoned that were powers and abilities rare or unfound even in the Other Earth, that may be used to benefit mankind. If they could recreate and study many paranormal properties; even if they could never be fully understood; they could develop a new Utopian society where technology, magic and nature can co-exist peacefully.
Eventually, it led to them seeking out those who could create A.L.I.C.E. machines - sentient machines with superhuman abilities that could manipulate aspects of space and time, or reality itself.
Many sought to abuse the devices and use them for weapons of war. Many of the A.L.I.C.E. machines took the form of enormous, powerful robots that could be easily modified to have destructive weaponry.
Recently, an A.L.I.C.E. machine crashed to earth with an unknown power not yet seen in a device of it's kind. Many big players in dealing with both advanced technology and the mystical are rushing to find this device and external components that may have dropped during it's fall.
Some have their own idea of creating their own false sense of order; an authoritarian state across both worlds. Thread is a mischievous living ragdoll; created by a mysterious woman called the Seamstress; a creature made from an unknown cloth-like organic polymer with strange mystical properties; most notably telekinesis, which she uses to move her body in absence of bones and muscles. She is one of those who fight against those who use devices and powers like that of the Machines to keep people suppressed.
With the backing of the gods themselves, Thread and her ilk stand to defend the world from a corrupt new world order brought about by the possession of the ultimate A.L.I.C.E. Machine, known only as the Apocalypse Angel. All kinds of strange monsters and men and machines will stand her way.
Armed with her telekinesis, a funky hairdo and a number of mythological weapons and artifacts; you guide Thread through several levels to find and stop those abusing components of the A.L.I.C.E. Machine.