In a world where fictitious characters and mankind co-exist equally, a stressed-out-psychotic film director filming his latest movie, fires, his egomaniacal narrator, a pixy, who purposely sets out to sabotage his movie.

Wouldn't the genre label help establish the fantasy conditions? But hey, any world where different types co-exist equally is a fantasy, IMO.

At first, I liked 'egotistical pixy', but then I got to thinking, aren't they all that way? Tinkerbell, for sure. Can this one be different? Maybe she has post-partum depression, is addicted to pixy-dust, and has an oddly low voice that helps her land narrator jobs.

The logline doesn't make sense to me without establishing the context, "a world where fictitious characters and mankind co-exist".

Who is the protagonist, the director or the pixy? What's at stake that I should care about who wins, who loses?

The most exciting word here is pixy (usually spelled pixie), so I'd start with that. When an egotistical pixie threatens to sabotage his latest movie.... You don't have to spell out the fantasy conditions of the world, because just saying pixie will tell us that.