Children see the world from a lower vantage point than adults. They're closer to the smaller things, the things they're more able to control. They're also more able to stand back and see the bigger picture in ways that adults may be too preoccupied to notice. The catch is, they may not have the life experience needed to put that picture in proper perspective.
What may feel like a tiny inconvenience to an adult may be a huge problem to a child. If Mom and Dad have a argument about laundry, the child may feel like they are witnessing a battle between giants. Likewise, larger problems like World Wars, the destruction of the environment, or a floundering economy may not feel that big to a kid if they're kept far enough away from their day-to-day experience. How big something feels compared with how big it actually is can be tough for the child to determine.
This space where children exist allows for concrete reality and unintentional fantasy to co-mingle without hesitation, allowing for the unfathomable to become everyday routine. Not coincidentally, videogames exist in a similar space, which is why some say that they are as close as we can currently get to entering each other's dreams.
These ideas are what make Attack of the Friday Monsters! A Tokyo Tale an emotionally and intellectually engaging, mostly-adorable narrative vacation game.