She only ever says it when it's the two of them, sounds like it's meant to be a private joke between them.The funny thing is that neither Sage nor Chad considered themselves King and Queen of B&R. I have no idea where Lily got that from. No one rules anyone around in B&R, not even the teachers (Dawe bullying Cathy).
As for new minigames, one that plays like an old school Flash snowboarding game with a Tony Hawk like sound track would be pretty sweet.