I did consider a possibility, an alternate way to consider the new setting for those who don’t like the implications about Twilight: The story of FiM is a legend in this Equestria, an old folk tale of sorts. Basically, this is an alternate continuity but the events of FiM are known as a fictional story in it.
Granted, I’m pretty sure this is already not the way it is given what they’ve said about the setting, but technically as long as they never directly encounter any FiM characters, this reading is still possible.
To be fair, this is not my own reading, as I don’t have an issue with the concept myself. But, maybe it will help others stomach it for now, though there’s always the possibility that it’ll be definitely proven wrong later, so grain of salt.