I guess for me I'm not sure why people are so obsessed with verisimilitude in their fantasies these days. If you work hard enough, you can pretty much poke holes in most fantastical setups (why didn't they just fly the eagles to Mordor???).
All the creators of this show are trying to do is create the setup that you have fairytale characters in a small town. They need to find a reason why they can't leave, so that they are all in one place because it's fun to guess who is which character, and they need to find a reason that the characters aren't much older because who wants to watch a TV show about old people (thinks Hollywood) - and also because they are doing parallel stories with the characters in the fantastical land, you want to be able to compare the characters then and now.
It's just all an excuse to have a small town with fairytale characters is all. And that's good enough for me. Right now, the show is far more entertaining than I expected it would be, and I'll be turning in next week
.