Ah yes. The feeling of confusion after playing the games is rather common.
The series doesn't give much in the way of answers, unfortunately, so a lot is up for interpretation.
My Take -
DTP is Huepow's Dream. Since a Dreamer's Dream World is a manifestation of things that they dream of Klonoa didn't belong because he was brought there from another Dream. When he was sent away at the end of the game he returned to his own Dream World and eventually woke up.
Hmm ... maybe I'll get into that sometime next week. (
THISISNOTAHINT)
Lephise isn't a Princess. In DTP she is called either a Songstress or a Diva depending on which game you're playing. I view Lephise as more of a precursor to a Priestess. A being with great spiritual power and a purifying voice
who is a damsel in distress. Lolo took over that type of role later in the Series which is probably why we haven't seen much of Lephise since.
Klonoa's parent's are not mentioned in any media so I assume that he doesn't have any anymore. Grandpa, which may or may not be his maternal Grandfather, is his parental figure and legal guardian until he decides to strike out on his own.
Aside - I played with the idea of " Babies Work Differently " in this Universe so it may very well be possible that Klonoa literally does not have parents and that isn't an uncommon thing. Inhabitants of the Dream World are created with Dream Energy. Their lifespans probably do not follow the same rules as mortals in the real world. Klonoa might be hundreds of years old because of that. Or maybe a few days old. It's hard to explain the concept without using walls of text.
Felt that Grandpa's (who is not-quite-dead apparently) death may have been staged to motivate Klonoa to do what needed to be done in the Endgame. Ultimately, we learn that Klonoa is the type of person who would have helped regardless so they didn't really need to go that far.
Views of Phantomilian = It's a Dream Language that enables people who may not speak the same language in the Real World to understand each other in the Dream World. Everyone speaks and can understand Phantomilian. They probably don't understand why or how, but that knowledge is buried in their subconscious.
Aside - Klonoa is multilingual. In what languages? All of them. He needs to be to be able to do his job effectively.