The fairies were angels once. When they fell from Heaven, some (like Tinker Bell) wavered in their convictions, flirting again with virtue. Pleasure Island is the work of a fairy who did not waver. Here, children live forgotten by the world. Here, kicking & shouting is permitted. Here, children never grow up - they grow into asses.
To the northwest lies Paris. Every year on Good Friday, French soldiers storm Pleasure Island, fighting their way past a new form of beast or illusion. If they win, they sheath their swords & seize as many children as they can. Terrific are the yells of the all-fighting children as they unwisely resist the rescue.
To the northeast lies Corona. "Back at home," the children often say mid-horseplay, "did you ever see anything crazy? Did you ever see anything that glows?" For there are such things in this world. "Cause you should never talk about it! Or the purple people will lock you up!" And indeed, there are grownups in purple finery sometimes, grownups more interested in children than in donkeys. They ask you if you've ever seen a fallen star, or a sad little angel, the same color as your hair, perhaps.
To the south lies the Mermaid Kingdom. The children of Pleasure Island know well the rumor that eels will grab your ankle & pull you into the sea. Thinking their peers liars, they swim anyway. On one occasion, an overambitious eel was herself captured thanks to the whale Monstro, & held prisoner in an old bathtub. When thousands of murky lobsters crawled up the beach to rescue her, the children decided to fight to the death. And they would surely have been pinched to smithereens, had not a winged woman in an elegant blue dress descended, fighting on the front lines with them.
Never Never Land: The Blue Fairy's reach is long, but the starscape is vast, & she cannot save everyone. She focuses on those lost children who pass a test of virtue (a banquet-table abandoned, forested with treats...), spiriting them to Neverland. Those who feast, well, the Coachman finds them before she returns.