Hated romance novels with a passion then and still do. I loved fanfiction like crazy. I wrote a lot of it too. Fandom was/is fun. I know people can be obsessed about it and get so wrapped up in it, that it becomes more fun than reality at times. Sometimes, the escape it provides is what it’s all about. There are limits though.
I went to several Highlander conventions and because of it, I’ve made some of the best, most wonderful friends I’ll ever have in my life. I even dragged my best friend into it, ;-). I still stay in touch with most of them and have gone to one’s wedding, have gone to visit others from time to time and they’ve all come to visit me. I wouldn’t trade those days spent online, chatting, writing and reading fanfiction. I don’t think it was a waste of my time. I don’t know if it felt like it was better than real life. I’m a writer and I spend a lot of time living in my head as it is so it’s easy to get wrapped up in “other worlds” so to speak.
When I started writing it, my original fiction was stalled. I couldn’t come up with a good idea or write a paragraph that was any good. The fanfic I wrote, I finished, people read, commented and fed my ego or critiqued my writing, which I needed. I know I’m a better writer for it. Though I know what they’re doing via Live Journal posts, I now feel a bit left out because I’ve stopped writing, reading, even watching TV these days and my old friends still do. They’ve moved on to different fandoms, but they’re still having fun. So, I find myself obsessed with my original writing and hope to finish something, someday!
Like any hobby or activity it can lead to addiction, obsession etc… but fantasy is also a good thing, in moderation of course. Sometimes the fantasy is better than the reality, I won’t disagree with you about that, but you do have to distance yourself from the fantasy and live in the real world.
Not sure if this helped but I had to add my two cents for what it’s worth.