[quote=@medalliah]
So just making sure I understand completely, the village itself is in the 'normal' world but with a barrier that crosses into a magical world?
[/quote]

The barrier conceals the Valley and the town within from Feyless observers. It's kind of a similar situation to Hogsmeade/Hogwarts in Harry Potter. The Valley, Pixiewick, and even the underground area technically exist in the "normal" world, but their existence is hidden from "normal" people. As for the reason why magical people would hide from powerless normies, we could say that Feyless can turn into demons or something if they are exposed to too much ambient magic. Whenever a Feyborn has to traverse Feyless communities, their glamour charm could also act as a magic dampener by absorbing ambient magic before it can affect any Feyless in the immediately vicinity.