On a content page that references a taxonomy term, how can I display only content that references that taxonomy term's immediate children?
I think you may be confused about how Views works.  To give a custom display to taxonomy terms, you don't need to create a content type to reference a taxonomy and then use Views to override how the content type is displayed; you can simply create pages with a view that display the taxonomy directly.

This means you may not need the Taxon Page content type; depending on what you intend to do, you could add any fields you need for your fish pages to the Living Things taxonomy and then display this taxonomy as pages by using a view that overrides how the taxonomy is displayed.

For an example, see the taxonomy_term view included in core:

/admin/structure/views/view/taxonomy_term

Another way to do this is to use Panels, which (with Page Manager) allows you to override the display for all taxonomy terms and attach a custom view (and whatever else you want) to those terms.

Yet another option is Display Suite.