I think I see a valid point there, but the wording isn't a good representation of what happens in play. Specifically, the fictional game world overall does not necessarily revolve around characters in new school play. Play revolves around the characters.
And I mean that in the sense that, in old school play, characters are semi-expendable, they come and go, and that doesn't really impact the focus of play much. In more new school forms, if we replace characters, we expect the focus of play to suit their narrative needs. It is not that the actual world changes, but the things we concern ourselves with in play changes.