Maxperson
Morkus from Orkus
It's very much the point to me! It recalibrates the lens through which we are invited to view the setting. The omniscient text of the game author is giving me "facts"; the voice of the in-world narrator is giving me a specific POV, one which encourages me to participate in the subcreation and weigh in with my own judgments. Which method, or combination of methods, the designer chooses to use tells you a great deal about how you're intended to interpret the information you get (or whether, indeed, there's meant to be an element of interpretation at all).
I ... buh ... I don't even know what that means, man. I'm forced to conclude that the weight and value you attach to the word lore is intended to loan this tautology some gravitas that is non-intuitive to me.
To me (si componere magnis parva mihi fas est), it's as circular and empty of meaning as if you were to look at the works of Shakespeare and say "the text is the text," ignoring that the Henriad and the sonnets are utterly different genres and making no distinction between the quarto and folio versions of the plays.
It means this. If I am a game creator, I have lore for the game. All that remains is how that lore is given to you. I can decide to give it to you through a narrator, creating the canon lore that way. I can also decide to give it to you directly, with no narrator, creating the same canon lore. There is no difference in the canon lore imparted by the two methods. Changes made to narrator canon have the same meaning and impact as changes made to direct canon.