You were pretty good to think up a relatively mundane alternate reality, although you did say there was some fantastical elements. I found it hard to write such a story, and had to set a relatively fantastical story (involving one mythological creature in particular being real, for a given value of 'real') in a more mundane setting. I wavered as to where and when I would set it, and what it would be about, but eventually I settled for England in the early 70s, albeit with influences from abroad. I also cherry-picked many real-life events and wove them together for the backstory.
It is pretty damn hard for me to write a story without fantastical elements, because otherwise, I get bored with the drama.
Oh, and JVQ? I think the word limits for the competition has been consistently 80K-120K words. I remember trying to build my novels for the first TP Prize up to 80K words, and despairing.
So, your new novel is partly inspired by
Dune? In a way, so was the one I recently finished rewriting. I was inspired by the cultural depth and complexity of
Dune to try and write a novel that remotely approached the depth of that one. I don't think I succeeded, but even if I had, the novel would be clunky. Not that
Dune is, I hasten to add, but that any attempt I make to emulate it would probably turn out clunky.

The Doctor: There's one thing you never put in a trap, if you're smart, if you value your continued existence, if you have any plans about seeing tomorrow, there's one thing you never, ever put in a trap... Me.
-Doctor Who: The Time of Angels