This dimension would be made up of floating islands, connected by the roots of giant trees or solidified clouds. I believe this dimension should be made up of a lighter block palette and have a cold feel to it.
This dimension could be very lush, with multiple fantastical trees. A hibernal tree could be a tree with lavender wood and dark blue and indigo leaves. A esteval tree can be a tree with light pink wood and warm sunset colors for its leaves. Gilded trees can be humongous trees, with pale yellow wood and a deep orange bark. These trees would be the ones to hold together the islands. Each island could hold different gems, such as opals, mithril, agates, any you could think, to use as tool enhancements with a smithing table.
Since the nether has an overall theme of mushrooms, there could be a rareish biome made up of giant flowers, with a new stem block and petal block, along with new small flowers. This biome could hold many new mobs, but the first to come to mind would be butterflies. You could use a jar to catch them, and display them in your base.
Going back to the cold feel, there could be a new block called Aurora Ice, which is an ice block that acts like prismarine, slowly going through colors of an aurora borealis. There could be pearlescent snow, a non melting snow that glimmers with pinks, blues, and greens.
There are already two different trading systems, so instead there is a rare island with a temple on it, where you have to solve puzzles for new and unique loot
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