For those that think in pictures, the root word of imagination is image or the ability to make images. When images arise from ordinary life then they are valuable because they have much more information in them than concepts like words.
But the other way around: when people are versed in word realities it's called imagination they tend to go to fantasy. And that's fine as long as you can make money inventing worlds that have conflicts that seek resolutions - as in a story, novel, fantasy-novel, si-fi novel, horror or video game, VR or AR world with interactive plots.
Either way imagination without a tether to some reality is delusional. Some fantasy maybe just be delusional or have delusional miracles, nest pas? Just kidding; the delusional miracles part, not the delusions.