Since the OP summarised his arguments, here are my objections:
1.
The Imaginarium Theatre was specifically said to be created from a mysterious magical ink bottle called "fantasy truth", which Madame Mage harness it using her powers to create the realm called "
true fantasy", which is the entire basis of the Genshin 4-A scaling. Simulanka wasn't said to have been created from fantasy truth, nor was it provided anywhere in this discussion that Simulanka was created using this "fantasy truth". Claiming that Simulanka was created using the same source and technique would rather be a hasty generalisation.
2.
The Imaginarium Threatre wasn't created by any of the 3 witches who created Simulanka, but rather a mysterious unnamed witch named "Madame Mage", who isn't specified to be any of the 3 witches that created Simulanka. Claiming that "Madame Mage" is one of those 3 witches is also a hasty generalisation. Only Madame Mage was mentioned to be able to make "fantasy truth" into a "true fantasy"; not a single piece of evidence clearly hints that this ability applies to all of the 3 witches who created Simulanka.
3. The Imaginarium Threatre is accessed through a book, but it is said to be a world
that is between the boundaries of reality and fantasy. Reality refers to the main Universe, and fantasy refers to fiction itself. Not to mention that it is been said to be a "true fantasy", which can be dismissed as a realm that has a fictional theme to it, rather than being a strictly fictional world. On top of it, it's been said that they
were once fictional stories before being given a sort of life it, hinting that Madame Mage used her "fantasy truth" to transform it into a real world, and after all, it is been said to be a "
true fantasy".
4. Witch Magic, including Creation, is part of the Genshin UES. More details are explained in
these sections. Also, not to mention the concept of Alchemy,
which is a technique of creation that entirely revolves around the seven elements of Teyvat. Also, yeah, no need to say but Madame Mage was said to have used her powers in order to use the "fantasy truth" to create the
4-A realm.
5. I proved why Simulanka shouldn't be relevant anymore. However, the Imgur scan of Nilou's statement was newly provided so I'll express my issues with it. I delved into the quest where that statement took place, and there's additional context towards it. Before Nilou's statement took place,
she said that magic is used to give life to inanimate objects. She said that the magic is activated through an incantation, meaning you have to say "Abracadabra" to use the magic. The world of Simulanka was made with magic that gave life
[1][2], which means the 3 goddesses will have to say "abracadabra" crap tons of times to create a Simulanka, hence why Nilou said, "This is a world made of words". Overall, it shows that it is a flowery language on her part, and the phrase "This is a world made of words" is not to be taken literally. Adding to that,
there are various items brought from Simulanka into the real world, such as Nilou's and Navia's clothing.
6. Another concern was that the size of the 4-A realm might be taken into consideration because there is a realm called a World Within a Painting, which implies a similar world that is stored inside a painting, was created using the same magic that created the 4-A realm. However, it should be noted that
Pocket Realities are spatially separate from other dimensions, therefore being stored within materialised objects of other universes won't count.
These are my summarised objections. However, I'll say that the current scaling chain is wrong and I do believe that 4-A rating should be deleted from various characters. However, it is another topic to be resolved; this CRT entirely revolves around the legitimacy of the 4-A feat itself, not the scaling chain or anything else.
@DarkDragonMedeus @Maverick_Zero_X @LephyrTheRevanchist @DarkGrath @Qawsedf234 @Firestorm808 @LordGriffin1000 @ActuallySpaceMan42 @Propellus Pinging for re-evaluation as requested.
I'll let the staff decide.