Eh, magic and dragons are just the setting. They exist in this world, but operate within the boundries of human comprehension, right? If you create a whole storyline basing on something as silly as the alternate reality concept and try to somehow make it serious, it fails.
Bioshock Infinite is pretty much the only example of a game where this concept somehow worked, and it did only due to the fact that the creators did put a LOT of thought into it, basing it on real science theories and research. Even then the plot falls a bit flat when you think about it, because the whole premise is just illogical. Warlords didn't put the same amount of effort into it, making it just "a time travel story, but we don't wanna call it that way because it's lame". And at this point you can safely call bullshit on the whole thing.