We also don't want to distance ourselves [i]too much[/i] from canon though, otherwise it's equally fanfiction. Just wanted to say that.

What about setting the RP before the main canon timeline? Like have the characters be the previous graduating class of one of the schools (preferably Beacon if only because it's the school we know most about). That way we can effectively distance ourselves from any huge catastrophes.

Alternatively, just set it at any point in the recent or distant past, either before or after the War. The schools and the technology to build weapons seems to have existed for at least a hundred years or so.