It's actually insane how much the art overhaul has improved this. This is great and I would pay to play the full game. The level where you kill all the red fairies for no reason after using them actually made me laugh out loud.
I think the one thing that I could suggest is giving the player a separate quick switch button to use whenever they want instead of telling them to go into the options menu for a fixed toggle 2 worlds into the game.
Also maybe give the blue fairies some lore reason to be more important and pokier/cheekier than the red ones. Maybe a crown?