Ivalice is not a figment of Mewt's imagination -- it's the historical version of St. Ivalice before a great flood wiped it out. (along with all the various other races and magical abilities) The children are simlpy re-enacting the historical world of Ivalice, which is in turn, happening in Mewt's imagination.Originally Posted by Skyblade
To further confirm this, remember that Viera, Bangaa, etc. exist in Final Fantasy XII, which is based in the same world.
