Warhammer Fantasy has iron tanks but people still view it as fantasy because it's not industrial-era level tech, they're generic steam tanks
The difference is in the scale

Every country felt like they were relative to eachother but now it feels like Snez is the British Empire after the industrial revolution, how on Earth haven't they steamrolled the rest of the world already when they have massive industrial facilities with the ability to mass manufacture weaponry???

Why didn't Capitano pull up to Natlan with massive amounts of artillery and just nuke the big abyss eye??