The game was pretty good and all, but the thing that puzzled me is this: Jerry's father was taken when the memory version of the Marquis stepped into Jerry's world, but what of Jerry's dog. Why did the dog vanish along with Mr. Hazelnut as well?
Maybe his dad was the one who gave him the dog and therefore without Mr. Hazelnut, there was no one to give Jerry the dog.
Other than meta reasons like “it's for kids” and whatnot, why did the lizards never do anything to Jerry? They threaten him, but never do anything even when they realize that he's not affected by their spell.
They don't seem to fully realize. At first, everybody in Mousewood is suspicious of them, but they're patient. Then, when the mist falls, the lizards continue to try to sell him bottles/future predictions even if it didn't work for the first time to slowly rob him of all of his supposed possessions. If Jerry drank from the offered bottle or got his 'Zaroff ticket', he'd likely be affected as well (and it took quite a lot of bottles to make the Hare barter all his belongings). Also, they think they've won – they're enjoying it, aren't really in great hurry and don't see Jerry as a serious threat.