After reading through everyone’s thoughts, I’m now leaning towards the speculation that Peter Pan’s Shadow is up to no good–and that Hook and Bae have a mentor and protege type relationship. I think “Storybook” London is adjacent to Neverland, and like the Land without Color, it is not “Land without Magic” London in the past.
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“If I had a world of my own, everything would be nonsense. Nothing would be what it is, because everything would be what it isn't. And contrary wise, what is, it wouldn't be. And what it wouldn't be, it would. You see?” -- Lewis Carroll, Alice's Adventures in Wonderland & Through the Looking-Glass