Well, yes and no. One of the key aspects of RV is the ability and need to target a concept and explore what it is. For example, if a given target is something like "gaslighting", which is not something tangible, can potentially mean: 1. manipulating (someone) by psychological means into doubting their own sanity, or 2. The act of lighting butane/propane gas.
Neither are an object, thing or place. But still a legit target, because it is an idea that EXISTS, albeit a popular idea nowadays in the mainstream, as with meaning one, which may not always be the case, so the idea itself can be explored in the data matrix in the fashion that the viewer's subconscious mind can best interpret the idea.
For example, with the Tooth Fairy one, the viewer might describe the motion of a fairy looking entity taking a tooth under a pillow at night. This does not mean the data is false, or overlaying someone else's interpretation, but it is describing the general idea of what the consensus may imagine the idea to involve. The viewer then is able to discern the metaphor from the literal.
Like someone else also pointed out, if the viewer is sufficiently sharp enough in their ability, they're able to distinguish real from imitation.