[davem]

Tolkien's Mythopoea http://home.ccil.org/~cowan/mythopoeia.html is clear on his own position - that Fantasy is not (or should not be) about lies

He sees no stars who does not see them first
of living silver made that sudden burst
to flame like flowers bencath an ancient song,
whose very echo after-music long
has since pursued. There is no firmament,
only a void, unless a jewelled tent
myth-woven and elf-patterned; and no earth,
unless the mother's womb whence all have birth.
The heart of Man is not compound of lies,
but draws some wisdom from the only Wise,
and still recalls him. Though now long estranged,
Man is not wholly lost nor wholly changed.
Dis-graced he may be, yet is not dethroned,
and keeps the rags of lordship once he owned,
his world-dominion by creative act:
not his to worship the great Artefact,
Man, Sub-creator, the refracted light
through whom is splintered from a single White
to many hues, and endlessly combined
in living shapes that move from mind to mind.
Though all the crannies of the world we filled
with Elves and Goblins, though we dared to build
Gods and their houses out of dark and light,
and sowed the seed of dragons, 'twas our right
(used or misused). The right has not decayed.
We make still by the law in which we're made.