It’s common knowledge that Jim is screwing around with Lily. Rosemary is tired of being a wife in name only as Jim cheats on her.
For the “queen without a crown” line, Lily is a “princess”; lower than Rosemary. There’s also the obvious question of the richest man in town’s wife working as a dance hall girl.
Plus Rosemary publicly sits with Jim, which Lily does not do. I suspect she married Big Jim for money, not love, which is why she feels like she is playing the role, not really being his wife.
While I am a tremendous Dylan fan, anyone who is a literalist needs to listen to different versions of the songs on various bootlegs and demo tapes. From Chronicles it sounds like he is an intuitive songwriter, and if you count up the number of songs on the Wittmark Demo official bootleg with the other released ones, he writes damn fast.