How long of a series would Little Busters need to be to tell the story? That is probably the answer to "where is it?"
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From the synopsis, one of them is already close enough to 'normalcy', the one he's dating- while the other one has her delusions running wild.
So it's basically a battle between the real world and the fantasy world 
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They is why I picked Haruhi and Tsuruya. Haruhi is the delusional one while Tsuruya is the more normal one....but basically the same....just different levels of the same crazy.