Steven den Beste has a bizarre theory
about what's going on in this show:
This show is about the crazy little sister of our long-suffering male protagonist. The fairies are toy fairies that come in bottles; but she believes that she is the fairies, and the series is largely from her POV, so she is filmed as she sees herself - as the fairies. We only get to see her as she truly is in the last episode.
This is very
unlikely to be what the writers were thinking, but it makes a twisted kind of sense. Still, if you read the long form - it's kind of depressing.