But in God's kingdom the presence of the greatest does not depress the small. Redeemed man is still man. Story, fantasy, still go on, and should go on. The Evangelium has not abrogated legends; it has hallowed them, especially the “happy ending.” The Christian has still to work, with mind as well as body, to suffer, hope, and die; but he may now perceive that all his bents and faculties have a purpose, which can be redeemed. So great is the bounty with which he has been treated that he may now, perhaps, fairly dare to guess that in fantasy he may actually assist in the effoliation and multiple enrichment of creation. All tales may come true; and yet, at the last, redeemed, they may be as like and as unlike the forms that we give them as man, finally redeemed, will be like and unlike the fallen that we know.

Source: Tolkien on Fairy Stories