The plot is really up in the air at this point. We've got some stuff figured out EG:
I'm the midboss/fake Big Bad who turns... well, not good. But I'm with the protagonist.
Armok is the final big boss
There's some form of relationship levels with your party members. If you upgrade one of them to 'romantic' some future dialogue and maybe an event or two will reference this.
The final confrontation will take place in Various Nonsense (Maybe. VN could be the postgame extra dungeon where you fight the Brothers Administratum)
I can't recall much at the moment due to reasons but there's what I got.
We also were going to have pony and penguin kingdoms/organizations/things, and the player would be forced(?) to join one or the other to advance the plot. Obviously each group would have different items/quest-lines (maybe dungeons?), thus doubling the replayability. Oh, and we were also going to have a wolf kingdom that just kinda hung out to the side. What else...
Well, there's also a dwarven kingdom that Ursula grew up in, though it's probably not going to impact the story too much as far as I can remember. Mind you what Ursula(/her family?) is doing with the dwarfs isn't clear at this point. Some people have been toying around the idea that she's faking amnesia to allow us to play with some RPG tropes, while GreatWyrmGold pretty much wants to play it straight. Really, the plot is extremely vague at this point, so contribute away!
Well, I think Ursula should be on her own for the first little bit...at least until the elder decides she's a hero.
Or however we're going to set the plot up. She should probably crawl through the first dungeon or two on her own to help establish her character as... What is her character? Have we reached a conclusion on that point yet? I was thinking about her being determined and stoic or something like that, but that's just my opinion. But whatever traits she has, we definitively need to start establishing them in the first dungeon. If we do go with a stoic Ursula, we could have her personality warm up as the player does the whole friendship mini-game with the other party members. Admittedly the whole thing is a bit cliche, but it would gel well with the friendship mechanics and provide more of an incentive. Who knows.