Okay... a few things to address, here, and I'm going to try and do it all in one shot.
I was under the impression that we had to draft things that were real.. lol
Nope. Only official rule of the draft is that selections must be board appropriate. As long as that criteria is met, everything is fair game.
Additionally, I have since asked that picks be finite and/or quantifiable for the sake of clarity (one, all, or a specified some). But, that has more to do with the how than the what.
Careful, rules are good. The lack of them has been killing the sister draft to this thing.
As an impartial observer, I think that draft has spun out of control because the rules have been inconsistently enforced (no offense to the mod), not because there aren't any rules in place.
There may not be specific rules on content or available items in this draft, but that doesn't mean that I'm going to allow for the completely nutty, multi-component picks that are being thrown around in the other draft. If I see things going down that road, it will be nipped in the bud immediately. One, clear, quantifiable, item/concept/idea/group of items/etc. per pick. Just one. But it can be anything.
As "official" arbiter, I think the "ability to fly" is only slightly outside the realm of what should be permitted as it's currently written.
Again, as written, nothing is off limits. Real, fantasy, or otherwise.
Finally, while I appreciate that you stepped in while I was out, the arbitration is really only meant to take place if someone specifically challenges a pick as being too similar to their own (and if that challenge is seconded).
In terms of whether or not an item/concept/whatever is available to be picked, the answer is always going to be yes. The most I'd ever do is ask someone to clarify or quantify a selection that may be too abstract -- for example, if I'd gone with my original idea and tried to draft "cool" neon signs, that would need to be clarified as it's nearly impossible in this setting to come to a consensus as to what "cool" includes. If, however, someone drafted something that was just a different wording of an earlier pick, that might warrant an arbitration. As another example, we've so far seen liquor, beer, red wine, alcohol, and a full bar drafted by different people. I see those all as different levels of specificity and therefore have no problem with any of the picks, but if someone were to draft "spirits," I'd likely second a challenge from the liquor person. In that case, we'd need arbitration.
Hopefully this helps clarify things for everyone. If there are any additional questions, feel free to ask either here or in PMs.