I thought this was very compelling storytelling! I really appreciate the blurred reality between the narrative and the story. It allows the viewer so much more to consume than just being spoon fed a 3 act formula with some obligatory characters and arcs thrown in.
And isn't that what makes cinema so appealing? It's relatable. When we can see a piece of ourselves in the story, it resonates and holds our attention.
So the idea of the narrator, who typically is placed on a fairly equal plane as the viewer, is pulled into the story, it similarly blurs the reality for the viewer, forcing them to question their own degree of separation from "stories." Similar to the Truman Show, but with a more playful tone.
AND they all played the chacaters so well! Very well acted!