Definitely an alternate reality, and the Wicked set does not suck. It doesn't matter fundamentally in the least if the Time Dragon Clock back-story is lost on audiences.
I think it's an excellent design whether you get the unspoken references or not. If you do, it's that much more clever. If not (as people I went with didn't), it still comes off as a fascinating alternate world.
Most people don't get the Flatheads in Wizomania either. Or the Byzantine architectural elements in the Emerald City. Or the turn-of-the-20th-century fashion references, or the blending of gender in the chorus clothing…
It's not going to ruin the show. These researched details add a rich “history” to the visuals.
"Jaws is the Citizen Kane of movies."
blocked: logan2, Diamonds3, Hamilton22