Religion
In reply to the discussion: Is religion good for kids? [View all]cbayer
(146,218 posts)they do not generally begin that by explaining to them that it is not real. Whether those stories are religiously based or not, most parents will not talk about what is fiction and what is not until they feel a child is ready or curious.
In terms of religious stories, since some people believe them, there is not general agreement that they are fiction. If they are good and thoughtful parents, they will explain that much of this may be metaphor, allegory or a rendering of a bigger lesson, just as one does for fables. They may say that they believe in these stories and that their belief is based on faith. As you say, parents will make decisions based on what they feel is good or bad for their child.
There is absolutely no evidence that there is a permanent difficulty in distinguishing fiction from fact, only that this one group of 5 and 6 years old tested differently. Since there is no attempt to establish "normal" in the study, it's not even clear that this is a delay. In fact, it could be the norm.
While I do not think this author makes a good case at all, there is data to support that children benefit from fantasy play and the inability to distinguish fact from fiction is normal and decreases over time.