Sugar Bowl is a crayon-colored wonderland of rainbows and kittens and resembles Fluffy Cloud Heaven, and everyone has a unicorn.. and all the girls wear pink... and all their characters are adorable furry Funny Animals who like to sing about friendship and happiness....
Zig Zagged: Adam and Brenda create the colorful world of Sugar Bowl using their crayons (despite being warned not to). It all works out nicely, until they develop their own separate religions of Adamology and Brendaism. Religious wars are about to be fought, but their religions combine into one, bitheistic religion.
Averted: The world, if more pleasant than our own, still has its share of plausible dangers and problems.
Enforced: It's a series for very young children, and a more realistic setting would be inappropriate.
Lampshaded: "Welcome to Sugar Bowl! When it comes happiness, Disney ain't got nothin' on us!"
While the majority of the population are happy with things the way they are, there are still some small but vocal groups who like stirring up trouble just for the fun of it. The government is trying to deal with them without being overtly harsh, putting a strain on workers who are just trying to make sure everyone is happy. The citizens are oblivious while the police become jaded.
But then a Chosen One from another world enters Sugar Bowl and frees them from the Crapsack World citizens. The citizens slowly recover, but does it with a smile no less. They learn to never make the same mistakes again.
After the takeover, Crapsack World realizes how shortsighted it's being. It reaches out and tries to make amends with the remaining Sugar Bowl inhabitants. When they do reconcile, they manage to learn from one another. Sugar Bowl becomes armed against other outsiders, and Crapsack World becomes not so crapsack-y.