The bubbly thing works fine in fantasy, lots of wierd monsters like that
As for the backstory, I can see it as fitting in fine perfectly well. Maybe a few niggles here and there, but no big problem. I still don't think that the faction backstory is incompatible though. Also, I don't see it fitting that well with the pre-selected "avatar" suggestion, that would require a bunch of different backstories based on the selected avatar (essentially, change the story of the person being a boy to something beffiting of the avatar type, but they all get transferred to a /containername in some way or another)