My lovely friend Bettina has a sweet little daughter. When the girl was about three, one day she was sitting at the dinner table looking out the window at the wide world outside. And she said very thoughtfully: "Mom, wouldn't it be beautiful if everything was pink?"
Taste questions aside, I think that's very precocious. And funny. Gotta love it.
"And imagining the world being different shows ability for abstract thought, instead of just reacting."
I a-fear you're right, Joe.
There are many signs the rigid "logical" mind gets a lot more rigid and in the way of imagination as we grow up.