Originally Posted by: CSchlegel[i]
This is because the child is using his mind to focus on reality while you are apparently focusing your mind on irrational nonsense. And for whatever reason proud of it? :(

Studies have shown that small childrens brains work on a frequency between delta - theta (dont remember the exact freq.). An adult with his/her brain working on this freq. is either asleep and dreaming or very drowsy.

Maybe you'd like to take that in to consideration before you assume that all children are able to accurately judge whats real or not.

Some people are very good at visualizing things. A good (maybe too good) example of this was Nicola Tesla who as a child could not differentitate at all between things he had imagined and things that were "real".