Yes! Hypnosis is a natural state of mind that occurs in most people on a regular basis.
Hypnosis is a state of intense concentration or focused attention marked by increased suggestibility. The hypnotic trance state is created by way of an "induction". An induction is a way get the conscious mind to take a back seat and allow access to the unconscious mind.
No, but they are enjoying using their imaginations in ways they probably haven't since they were children.