(I'm speaking generally here an not critiquing your game necessarily)
I think you should strive for realism as long as it enhances the gameplay/user-experience. You can fiddle with the physics in your game as much as you like.
Take the Super Mario Bros. jump arc for example. It feels great and responsive and it seems to make *sense* when I play the game, even tho it is not a perfect parabola, there is no drag (I assume the mushroom kingdom has air..), you don't die if you fall from a coin heaven and so on...
So I think drag, a maximum speed or similar non-physical things can make the gameplay more fun no matter the setting.