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Ultimately, having a "fantasy" setting just means there are things in the setting that go beyond reality. In a sense, the setting has two types of things in it: the mundane (that which is comparable to reality) and the fantastic (that which exceeds reality).
Now, different fantasy settings (which, remember, means "settings in which some things go beyond reality") will have different ways of determining how someone (or something) is allowed to exceed reality, to make the jump from being mundane to being fantastic.
In some settings, the necessary element to move from the mundane to the fantastic is simply magic. The Harry Potter universe is a perfect example: the fantasy setting is literally "reality plus magic". If you're a spellcaster (or magical creature), you're part of the fantasy story. If you're nonmagical, you're part of the mundane background; you're what the reader/viewer compares the magic to in order to see how much more fantastic it is than you are.
In other settings, a person could exceed reality and move from the category of "mundane" to the category of "fantastic" by any number of means: magic, training, enlightenment, divine parentage, and so forth. This type of setting is where you see people like Pecos Bill, who could lasso a tornado just by virtue of being a badass. Thus, his badassery was able to elevate him from "mundane" (realistic) to "fantastic" (beyond reality).
Both types of settings are fine. They tell different types of stories, and neither can really fill in for the other.
But there's an extra complication when you're talking about a game.
See, in a book or film or TV show, you can mix fantastic characters with mundane characters as you please, because you can carefully sculpt the action to have the result you want. In Avatar: the Last Airbender, the setting is of the first kind I described (only magic gets to exceed reality and be "fantastic"). However, the core group of protagonists includes both fantastic and mundane characters—there's even an episode about one of the mundane characters dealing with that gap. But since it's non-game fiction, the authors were able to create circumstances where the mundane characters could contribute meaningfully to the story through
clever scripted use of circumstantial carefully-placed resources.
But in a fantasy game, that's a LOT harder to pull off. Even if you carefully sculpt situations where the muggle can help save Hogwarts, it will often feel hollow and contrived. Typically, it's no fun to have one player playing a fantasy hero and another player playing a mundane, non-fantastic character in the same game.
The ideal, then, is for every player character to be able to be "fantastic", to exceed reality. It doesn't matter which kind of setting you're using or what the requirement is for moving from mundane to fantastic; it just matters that each player has equal access to it. If exceeding reality requires a gift from the gods, then every player character should receive that gift. If exceeding reality requires being taught by a fantastic mentor, then every player character should have such a mentor. If exceeding reality requires access to magic, then every player character should have access to magic.
So again, it doesn't matter whether or not magic is the only way to go beyond reality and into fantasy. All that matters is that every player character gets to go there. The setting's definition of fantasy must be something within every player's reach.
And that's where the problem comes in: people who want a setting where X is required to exceed reality, but where not every player gets to have X. In the case of discussing Pathfinder, X is usually magic: people say that they want their fantasy to be defined as requiring magic in order to be fantastic (which is fine) but then fail to realize that some game options lack the very thing they defined as necessary for fantasy and are therefore by definition not fantasic!
The end result is this: if you want a setting where only magic can exceed reality, then fighters are not fantasy heroes, and you're just fooling yourself to say they are. If you want nonmagical characters to be capable of fantasy, then you have to allow nonmagical things to "go fantastic," to exceed reality. You've got to pick your direction and commit; trying to claim one setting while enforcing the mechanics of the other is why we keep having these arguments.