I'd like to try my hand at a turn of modding.
I have a few ideas about the lore in the meanwhile (not yet sure what bits could be represented well in-game, though).
So far we're discussing both magic and invaders from another universe. This is on top of an entirely new setting. Three degrees of separation is a bit too chaotic, in my opinion. It makes it difficult to explain to people, and I think what we need to pull something coherent from this adventure in godhood is tighter focus. And on that note, I really love the story being told in the background of young gods crafting a universe.
I think I have a way to describe these separate things, magic, world crafting, and extra-dimensional invaders coherently.
You see in small applications, magic can be a force for order. It can allow those sensitive to it to shape the world around them. Some cave creatures and rocks may even use it passively, perhaps for bioluminessence. But in our godly haste, we overlooked it's cost. As our world grew more attuned to the forces of magic, it began to rend at the fabric of our creation, in places breaking down the very rules it was built upon.
These stains upon our grand tapestry are know as 'evil' to some, but they are simply the workings of chaos. The touch of the mad gods, who lurk in the shadows. We who build this world are gods of Order and Chaos. Only time will tell which side will claim this realm.
Story time finished, what do you all think? I'd call it the Realm of Order and Chaos. Perhaps when a suggestion is brought up, we could call it orderly or chaotic, and if it's orderly it becomes apart of the base realm, and if it's chaotic, it becomes a product of the blighted chaos biomes.