ok, well last night just before i went to bed, and taking into consideration about kids looking up to Harry, what if they didn't get rid of the fantasy, but backed it up a bit. like say it was a dream, but instead of Harry being a muggle, he would still be magical, and then in the last scene (if it's turned into a movie), you see a wee baby wake up crying in a crib with a scar, and his parents walk in and are like, "what's wrong Harry?"
it would still add a good twist, and it would be like he saw the future, or it was just a dream, leaving it for the reader to decide what really happened.