My first reaction is that these kids are so weird, taking all this in stride as much as they do.
It's like a kid's movie version of how you'd react in this situation —"Well, let's play the game like this then, that's so awesome!" instead of, "HOLY EXISTENTIAL CRISIS TIME, WAIT, WHAT HAPPENED TO THE APPARENTLY REAL PEOPLE IN THE OTHER PLAYTHROUGHS, OHMYGOD THIS RESPONSIBILITY I CAN'T," which would be more my reaction.
From an author's perspective I can see how their comparative carefree-ness and credulity is essential for the plot to go on like they wanted it to, though.