So, my confusion stems from the fact that's they've gathered all the characters who are now in the real world and are putting on a "show" to the public. Now, these characters are from various formats of media, but in this "show" they're all being played by actual people (which they became after being transported) I assume? It didn't seem weird at first, as they were just anime dudes, putting on an anime, to more anime dudes.
But no, now I've thought about it, I can't un-think about it! How could anyone be excited about the prospect of some weird live action mashup of their favorite game/book/anime featuring totally unknown actors! The people of that world are mad!
Perhaps I'm focusing on the wrong plot hole though... Still, I'm enjoying my time with it.