I'm definitely in favor of the urban setting at least for part of the game. It doesn't necessarily have to be Nolybab, but a big city could work really well for platforming, and could have a pretty interesting atmosphere. Towering, corporate HQs, 10 story advertisements, dilapidated slums in the shadows of opulent skyscrapers... Could be a very good setting to explore class-ism, if that's one of the themes they're aiming for.
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Plot twist: Squeek is Elboze Freely coming back!
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He needs another chance to prove himself after that ridiculously easy boss fight!