I know, I know...you've heard me talk about how big Veronica's imagination is, but seriously, it's a bit out there. Of course, I don't have your kids at my house 24/7, so I don't have anything to compare it with. However, I would wager to say that she really does live in a dream world (most of the time).
According to a personality book I have, which focuses on Myers-Briggs, there's a chapter on understanding where your child falls under. For myself, I'm an ENFJ and after reading the "Idealist" child (all NF's are idealists), it further confirms that I have always been an Idealist. With this in mind, I look at Veronica and go, "Oh boy! So this is what it was like for my parents." (Veronica is definitely different from me as well--keeping in line with her unique person)
Aside from imagination is the memory capability of this nearly three year old. I'm quite impressed with some of the most random and mundane events she remembers. One thing she can remember the best is any Strawberry Shortcake DVD, which is a reason I limit her intake, because she would most likely start responding to "Strawberry," rather than Veronica. Below is a perfect example of this.
To the untrained eye, this is merely a picture of a little girl with her beloved blankie on top of her head. What you aren't seeing is the image inside her head.
She came up to me looking like this, saying, "BAAA! BAAA! I'm a wamb..." But she's not simply any old lamb. She finished that statement with, "...like Strawberry!" Upon watching one episode of Strawberry Shortcake, Strawberry disguised herself (along with her cat, Custard & dog, Pupcake) as a lamb, in order to find out who had been stealing Caramel Corn's barnyard animals. Veronica many times will replay the events of the previous day, week or month as she is talking for both characters. Sometimes the events never happened, but to her they actually did. In any case, if we're lacking entertainment, one thing's for sure--make myself some popcorn and watch Veronica perform.