Both Bo and Hansel never seemed to notice any kind of wardrobe shift(from pink to black clothes) ether, suggesting she wasn't wearing them in reality.
Probably the only flaw I see in your argument... Bo was shouting "That's not the Princess" at Hansel before she got herself stabbed, so somehow she saw Lico for what she really was...?
It certainly makes some sense of Lico's ranting. "He is the reason for me being here, and my heart bleeds for him. Not that I have one, but you get the idea."
I don't think they were sharing the same body in the nightmare realm, but that Licorice is a split fragment of Ginger. The Nightmare realm would be Licorice's home field and I would imagine that it would be able to manifest her in a physical sense in that realm. I'm also trying to find the warning, its somewhere when Gene and Hansel were in the car. He spoke of the realm changing people, or something like that. I theorize that it is by that power that Licorice is able to produce her own physical body.
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