Respectfully, I think you got most of it right, but incorrect on a big nuance when you said: "A fantasy world can be based on real history as we know it (consider, for example, the Nordic theme in World of Warcraft: Wrath of the Lich King, or the Norsca and Warriors of Chaos in Total War: Warhammer II). If it is then inaccurate, we're OK with that, we see it as artistic freedom. This game tries to base itself directly on history. Big difference!"

The author very explicitly states: "As I have argued here many times, fiction is often how the public conceptualizes the past and that concept of the past shapes the decisions we make in the present."

Through that lense, I would argue that "the Nordic theme in World of Warcraft: Wrath of the Lich King" or "Norsca and Warriors of Chaos in Total War: Warhammer II", while inaccurate, will still heavily sway perceptions on them. The artistic licenses do shape how they are percieved to the player.