People have been telling stories about magic and witches and similar things since the dawn of time, including Catholic countries, and I've never heard of such things ever being condemned. If we are going to condemn Tolkein's literature, we'd also have to condemn the Grimm's fairy tales, the Arabian nights, Hansel and Gretel, the tales of King Arthur, and all of the vast body of fantasy literature that goes back further than we even know, since most of it was transmitted orally, but certainly it goes back to before the Middle Ages in Catholic Europe.
I've sure read a lot of sermons and devotional books by saints, and none of them have ever condemned this kind of fiction.
Nice distinction, but not to the point of the presentation. The point of the presentation is that Catholics have no business calling Tolkien's works Catholic. Other points were made, including about possible harm to the soul, but they were collateral to the thesis.
Did not the Church Fathers contend over the question of whether Catholics should read the pagan classics? And did not the Church allow both schools of thought? Thus the question remains viable.
Secondly, we are not speaking about a) pagan literature, which has integral value, because it is based in reality, and to some degree natural religion and piety; and b) medieval Christian literature, which was firmly fixed in the Christian ethos, reality, and absolute verisimilitude. The condemnation of sorcery would have been either implicit or explicit in medieval literature. Nor would God ever be excluded from His own creation.
The problem presented by Tolkien and C.S. Lewis is novel. This is fantasy fiction, involving fictional universes, that deliberately and vehemently exclude God. They do not exclude men, women, children, trees, mountains, seas, animals, magic, wizards, good and evil - but they exclude the God who created all things, and Who condemns those who practice magic of any kind.
Why did these two Christian men exclude God from their epics, whilst including not only fantasy creatures, but every real creature under the sun? Perhaps because they unconsciously conjectured that excluding God would give them license to paint pictures that would offend Him if they came before His Face. Possibly, they got Him out of their sight, so they could be "free" to write. Guilty conscience swept under the rug?
Fantasy literature is a genre that would have the scholastics producing ten tomes per minute, if scholastics still existed. They certainly don't show up in fantasy literature. :)