"You don't need a story for realism, in the sense, this is how the real world is." = A story doesn't have to respect real world rules. In that sense, a story doesn't need realism. But only in that sense.
The whole point was if we need realism, not if we need a story

. And I was at least trying to express that what makes a story realistic, isn't if the real world is following the rules of the story. What makes a story realistic is if it follows it's own rules.
For example, I think Lord of the Rings is realistic. It follows the rules it establishes within its own world. If Frodo could fight and kill anyone and anything in it's path towards Mount Doom, that would not have been realistic. As he was an inexperienced hobbit with no battle experience and no special powers.
Does that mean anyone expects elves or orc or anything else from the books to be present in the real world? No.