I think it gets down to what you think about hope. In Changeling: the Dreaming, the worst day of your life is ahead of you...just like death. But you don't know when, and depending on your actions you can put it off for quite a while, and live a relatively full life.
I should, in the interest of fairness, point out that the "depending on your actions" condition allows for just as much optimism in Lost. Yes, it's a game that has had more of the old-school fear of fairies injected into it; but it's also a game about coming home. Nothing is inevitable in Lost. Depending on your actions, you could build a new life that's stronger than the one you had before, and die contented at the end of a ripe old age surrounded by your loved ones. It's not terribly likely, mind, but within the context of a chronicle where you don't actually play all the way to your character's final fate, you can do just as well for yourself. A little less innocent wonder, of course, but on the other hand, exposure to the mortal world doesn't take away the wonder you do have.
In Changeling: the Lost, from what little I know about it, you've had what you now consider to be the worst day of your life, and it could easily happen again. You also have to deal with the psychological trauma of that day...so are you truly free?
It's a good question — but the answer is really not "no" unless you decide you want it to be. There's a criticism that's unfortunately moderately persistent about the game; I say "unfortunately" because it's inaccurate. It's the complaint that you're "playing a game about victims." Which isn't true — it's a game about
survivors. It's like the difference between playing a 1st-level peasant whose village is slaughtered who winds up starving to death in a ditch and playing a 1st-level peasant whose village is slaughtered who takes up a sword and becomes a hero.
I dunno, it doesn't seem like a terribly fair standard to me. Now admittedly, it could well be that the folks who think Changeling is about victimization also don't like depressing stories about, I dunno, Batman (another person shaped by the Worst Day of His Life), but I kind of feel there's a faint double standard at play here.
Also, I enjoyed that you could, if you wanted to, play Changeling: the Dreaming as a lighter game. Unless you throw out the backstory, you can't really do that with Changeling: the Lost.
It doesn't seem to stop people, to be honest. A lot of the feedback and love I've seen the game get focuses on how Lost is ultimately pretty uplifting: it's got heavy romantic appeal, it's got a pretty empowering message (in that you have beaten one tremendous challenge and you have the cunning to do so again), and of course, there's plenty of chance to be as pretty and shallow as you like. The main difference that i seem to notice is that there's more of the creepy aspect of fairy tales — a little more Neil Gaiman and Susannah Clarke than Calvin & Hobbes.
It's not for everyone, I admit. But it was built to be a very versatile game, and I've seen plenty of proof that people have been taking advantage of that factor.