Sounds to me like an active imagination, which I agree is not only harmless but healthy and beneficial as long as it doesn't spill over into a person's perception of reality. I guess what I'm saying is having your head in the clouds is a wonderful gift, but don't forget to keep your feet on the ground.
At the age of five, Skagra decided emphatically that God did not exist. This revelation tends to make most people in the universe who have it react in one of two ways - with relief or with despair. Only Skagra responded to it by thinking, 'Wait a second. That means there's a situation vacant.'