I personally don't really care one way or the other about the reality of the Goblins world. It doesn't really feel to have much plot importance, regardless of how it is. I was just pointing out that the breaking of the 4th wall there really doesn't tend to be plot important. It's just jokes like the diamond, or the Oracle reading the translations of Haley's speech. It's not something like The Lego Movie, where the solution can only be through 4th wall interaction.