There are plenty of mist free areas in the biome to make a base and you can also climb high enough that the mist does not reach you. You can also place Wisp Torches safely as they will no longer be targeted by enemies. The mist is fine and I have no real problems. I do agree though that combining the mist with brutal terrain was a no-no.

As for the Queen, grind your Elemental and Blood magic skill up. Elemental into the 40's or 50's and Blood Magic into the 30's. Go find a swamp mob spawner or a grey dwarf spawner to help with this. Then fight the Queen with the Ember Staff and Staff of Protection. If your bubble shield breaks run off the edge and float down as you recast the shield. The Ember Staff will demolish all the adds and do great damage to the Queen. I killed her in around 14-15 minutes. Stay mobile, run away and jump off the ledge with Feather Cloak if you need a breather.

Use Misthare Supreme, Seeker Aspic and Ygg Pudding. Use Poison Resistance/Lingering Stamina/Minor Eitr/Major Healing potions as needed. Above all run and dodger roll away to recast Staff of Protection ASAP after it breaks or fades. If you can do that then its just a matter of time as you blast her and the adds to flaming bits with the Ember Staff.