But a kite...?

Molly: How could there be a kite flown in the house?

Me: Well, I guess if you can imagine a big talking cat with a red-and-white striped hat, you can imagine a kite flying in a house...Hahaha!

Molly: (staring)

Me: See, because large talking cats in tall striped hats...don't...Hee..heh...I mean, they...

Molly: (staring)

Me: They're just ima...Hmm.

Molly: (staring)

Me: 'I bet, with my net, I can get those Things yet...'

I get it. Among other things, there's nothing about the house ostensibly preventing a strange, unrealistically depicted talking cat from appearing because if you can imagine such a talking cat, you could just as easily imagine one appearing in a house; but there are walls and a ceiling preventing conditions sufficient for lift, etc. in order to fly a (comparatively) realistically depicted full-size kite such as those in the characters' hands.

Still, she could have laughed condescendingly while avoiding eye contact or something, right? ;)