I've edited the first post, throwing in hints about a conflict between urban and rural life. I've also added a section on "Factions," to make a list of nations, cultures, organizations and religions. I'd love it if someone could double check that to make sure I haven't forgotten anything. Most of the names on that list are wide open to be changed... I just threw something up there as a placeholder.

The more I think about it, the more OK I am with having the steampunk setting coexist with swordplay. If we set this in the late 1870s, revolvers have only just started to come on the scene, and most people would still be using single-shot weapons... maybe even flintlock things in some regions. With that in mind, guns become a (still very valuable) fight-opener, before closing in with swords drawn. Granted, there are still those people who have the means to own a high-falutin' six gun, but those people are rightly feared and very rare.