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The big picture
I doubt I'm right, so this probably isn't a spoiler . . . but maybe it is! You've been forewarned.
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I'm guessing that the reason for the "cutesy" baby talk, the fact that Stanley is so short and childlike, and the reason the Arkenhammer looks like it is (and the reason Wanda looks like she does, for that matter . . . who knew a chick with a head bigger than her torso could look hot?), is because it's all some kid's home campaign world. Presumably Stanley is the GM, or world designer, or something.
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Re: The big picture
I assume it is like that one Larry Niven world where everyone has brain damage.
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Re: The big picture
Then how does one explain the giant elvises?
I think the little kiddish stuff is there simply to be absurd and silly, and that there's little else beyond that.
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Re: The big picture
Maybe their childish because the people who 'play' the characters inside Erfworld are kids?