Well, although I would love it if August is Baelfire and Peter Pan, yes I subscribe to the crossover theories of characters, I can also see him possibly being Pinnochio. One way or another I believe the fairies are involved. What if Baelfire’s “fairy godmother” gives him an out. We know the mines are not making fairy dust toward the end of the storyline where they lock up Rumpel. Perhaps the fairies are banished and take Baelfire with them to Neverland perhaps, where he doesn’t grow up, but does a lot of traveling before returning to the “real ” world.