Spoilers in response to zircon's spoilers.
One thing that kinda bothered me was Mr. Drippy's involvement in Alicia's past and how the story never really addressed it. In reality, there was no way he COULDN'T have known Ally was Alicia. To him, the last thing he can clearly recall consciously is Shadar turning him into a doll. This had to have happened during Shadar and Alicia's final battle.
So then, if Mr. Drippy knows all that, plus what his fairy allies have been telling him for over ten years, PLUS when he returns to normal in another world entirely (and knows where the magic book is stored)... Why doesn't he connect the dots and realize the truth well before it's explicitly stated? I posit Mr. Drippy knew the entire time, but kept up a lie so Oliver would do what he wanted. He then pretended to act shocked and surprised with each new "revelation" about Alicia (he is an actor, after all), to throw off suspicion.
Also in the original DS game, Shadar was indeed the final boss, which explains why the fake ending after his defeat is so more developed.