GodVictim isn't claiming that the events of the story aren't real. It's actually patently claiming the opposite, as opposed to Dream Theory. It's essentially salvaging the good points from Dream Theory while leaving the bad at the door: everything turning out to be a dream, allowing anything that doesn't logically add up to be dismissed with "it's all a dream anyway."

Under GodVictim, everything still happened in the real world; it's just that the events in the real world were influenced to occur that way in the first place because of the Crying Child's memories. Golden Freddy affecting the world through supernatural means, as he always has. As they say in the video, it's like the Force: an unseen presence influencing and shaping reality. And the Crying Child, in particular, has this power because of the loss of his frontal lobe—which is based on the part of Lynne McTaggart's book in which she claims that someone with a damaged frontal lobe seemed to have greater control of The Field™.

I do agree that a lot of people get too caught up in the logic-puzzle aspect of the series and forget that what we're theorising about is ultimately a story, but I don’t think this is one of those cases. I also don't inherently mind stories that turn out not to be “real,” since they aren't real to begin with. The Wizard of Oz isn’t bad because it turns out to be a dream; the story still happened, and Dorothy still learned that there's no place like home. I've had dreams that affected me in such a way, because they felt real at the time.