In Kabbalah (Jewish mysticism), Malkuth is the physical world, the lowest of the 10 Sephirot (mystical emanations/levels of godliness/it's weird). You've probably seen that cool "tree of life" diagram in fiction somewhere - Malkuth is the bottom of that.

Qliphoth (I hate that transliteration, it's pronounced "klee-pote") is a sort of barrier of impurity, blocking the divine from reaching us. However, in later occult traditions it became something bigger, sort of a realm of evil opposed to the Sephirot.

In other words, he's saying he thinks we're not in Creation, we're in Hell.

I have no idea what the chapel perilous is (Google tells me it's a name for a mental state where you're uncertain about the supernatural?), or what it has to do with Kabbalah.