There seems like a gap here somewhere that we have probably talked about before somewhere.
Grumpy was not named Dreamy when he met Snow in the cell, yet in his centric episode he breaks up with Nova and returns to work then becomes “Grumpy”. So what we just talked about suggests he somehow got in trouble after that for stealing a diamond for a girl but that wouldn’t make sense as he’d already broken up with her, unless, he got in trouble after that.
In any case, its possible that Blue Fairy ordered the mines closed in order to have a magical enough place to hold Rumpel, but I’m not sure they had mined the last ore and it was closed already. That could be, but I am trying to recall something that backs that idea up to further the idea that FTL had many signs of losing magic.
So far our only clue seems to be Fewer Enchanted Trees. That’s a good clue still, but not as strong as multiple signs like no more ore, no more beans too.
“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