I really sympathize with this paragraph. I feel this way a lot. I have my own fantasy escapist story that I play around with when I have time. Eventually some of the characters and events make it into my written stories. Perhaps something like this would help. Like when I am doing dishes I am not doing a simple household chore, I am a princess hiding among the kitchen drudges from the evil usurper king plotting to avenge my family and reclaim the throne.

When it comes to your actually written words... They are honest, true, and fantastical they scream for a treatment as a poem. You don't have to follow a complex form or rhyme even it is called free verse and that is what it is, free. Dragons can fly and you can still be grounded in reality.