We-e-ell, I wouldn't call this book a "fairy story", since I tend to equate "fairy story" with "fairy tale." This is a story that has characters who could be wrongly pigeonholed as fairies, I'd say. And while I share your distrust of using a general term of western origin due to its potential to flatten salient differences...I don't know, I like the idea of an umbrella term for ease of discussion. I'd be happy with a different umbrella term.

Oh snap, I forgot to add in the paragraph about the kalliarchy! *goes to edit*

Also, um, READ IT. It really is that good! I was serious when I said I nearly cried, and that's a really high bar for me.