Demigods are demigods; there aren't even humans as such. Therefore, it's clearly not classic fantasy. So, the example with synthetics doesn't work as justification for the Forge.
What are "free cities"? A rabble? A hodgepodge of different races? Another duplicate of humans (and considering that there are already mages based on humans, along with their descendants – the undead)? Forget such a "faction."
The Forge and the Conflux share a common problem: they are both a rabble, lacking a single, unified race. The first is a rabble with technology, the second is a rabble with elementals. The Forge doesn't fit the lore, but at least it's realistic from a practical point of view. Elementals might fit the lore, but not as a faction. What do they live on, what is their culture, what are their technologies? On magic? But then it's just a duplicate of the mages.
Free cities are a parody of medieval Free Cities. Only here, everyone gathers, it's a dark, bandit-ridden city. Simon Green wrote about something like this:
If you're tired of living, come to Haven; you'll definitely be killed here. Haven is an independent port city...