What is your working definition of fantasy as a literary genre?
What if my boring life could get exciting when I entered a magical wardrobe?
What if an invalid is the savior of a mystical land?
What if I could fly a dragon on a daily basis?
What if the girl of my dreams was a star that fell to earth?
What if my brother was Ananzi the Spider?
And so it goes.
Sure, that gets into the other slices of fantasy, such as urban, high, etc., but in each case, the appeal isn't in the setting so much as in the way it draws on my sense of wonder and what if, and to me, that's what makes fantasy fantastic.