You've got some great things in here: The funnel, the council members and their bonuses to your funneled townsfolk, the crashed spaceship near a fantasy town, and everything about the inklings. The layout felt a little sparse, and some of that available space could go toward fleshing out the scenario's potential endpoints a little more.
What happens if the inklings win and inhabit the world? Do they incessantly reproduce in the sunshine until the whole planet goes dark? Will the pilot force them back into the fuel tanks after finishing the ship's repairs? If so, how can the tanks hold all the freshly-spawned inklings? And what about the containment dome mentioned only in the intro?
It could use a little more explanation, but I love the total gonzo feel to it all.