That's really interesting input Hyle, I didn't know the islands were part of the same archipelago. Where is that confirmed/implied?
Upon about a week of reflection, I've realized the thing that makes this more exciting than the DKverse. It's the fact that the developers of the system of games actually want the connections to seem real. Sure, Banjo and Conker in DKR are "real" crossovers, but the ideology behind DKR "just" being a crossover racer that shouldn't be thought into much kind of dulls the connection. Plus, Nintendo themselves hated it. They didn't like that Mario and Conker lived in the same universe for obvious reasons.
Here, however, Playtonic views connecting one game to other games as a definitive plus, which is great.