The Feywild is an "echo" of the Prime Material Plane. It is here that the fey originated and reside, giving the realm its name. As a parallel plane, the Feywild's geography is similar (though not entirely identical) to the geography of the Prime. Similarly, its inhabitants and many creatures exist as fey "echoes" of Prime creatures.
Arcane magic runs more freely and powerfully in the Feywild than it does in the Prime. It is for this reason that so many of its inhabitants are magically gifted. The Feywild is also reputably beautiful, especially compared with either The Shadowfell or the Prime.