It's definitely a different type of fantasy, urban fantasy as you stated. But after looking up the difference between fantasy and sci-fi (again, for my English teaching knowledge), I really came to see Pokemon as fantasy nonetheless. They don't go out of their way to explain things like how the Pokeballs and PC Storage System work, they just do, and that's okay. Seeing it from this angle actually caused me to breath a sigh of relief since everybody wants to be Cinemasins and poke all the holes nowadays
I appreciate Turner stepping in and helping the team drop some stereotypes, too, but now I'm with Orphalesion in wanting to know what a "traditional fantasy" Pokemon world would look like. Like if they fleshed out the beginning of the Lucario movie or something