Quote

“Literature adds to reality, it does not simply describe it. It enriches the necessary competencies that daily life requires and provides; and in this respect, it irrigates the deserts that our lives have already become.” - C. S. Lewis

I think the speaker meant that literature doesn't just tell about reality and life, it adds things to it and makes it more interesting. It makes life more fun and it makes life worth living.

This relates to Peter Pan because he doesn't like being bored. He doesn't want to grow up and be a boring adult. He wants to stay young and be care free. He has an interesting life and he loves his life. He never wants to grow up and he doesn't want Wendy or the Lost Boys to grow up either.