Wean - I may well try that approach. I am with Nanny Ogg, children should have mythically scary stuff as they grow up. A few years ago I convinced bear (and quite a few kids on the street) that there was a dragon living under our front steps. Actually there was nitromors and no lock on the door, and they were never threatened with the dragon. The dragon stayed safely under the steps and Nice Mr Next Door used to get me coal for it. There was a time when it got out and down the street (saw a burned patch a little down and made the most of it) but bear never seemed scared in any way. He was just rather impressed that he had a dragon under the steps. This is what it looks like now - with a lock, just in case.
Smaug wouldn't give you sixpence for it as an entrance to a dragon's lair, but it kept the kids away from chemicals and more or less out of trouble for a while. It also added a layer of magic. I think all childhood should have that, and bear seems to have flourished on it.
I have just finished writing an email that wasn't really to DH but was to Father Christmas to pass on to the ToothFairy. I'm not 100% behind the concept of the tooth fairy, but I go with this flow. Bear knows that I have Father Christmas' email address and I have let the tooth fairy know where the very important tooth is being left.
I try and keep a sense of wonder for bear, but I try and balance it with being truthful. I've been honest when bear has asked about things he sees on the news, or stuff that is in the shops or that crops up on YouTube. Last night he asked what would happen if father carried on not eating or drinking. How do you tell an eight year old that effectively their grandfather is starving to death and there is nothing anyone can do? I said it probably wouldn't be good, and changed the subject. Bear seems okay, I'll try and keep an ear out for the hidden questions. I just wish I knew the right words.